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Industry awaits Sunak's job protection plans
Chancellor Rishi Sunak is to announce details of what happens after the furlough scheme expires at the end of October, today.
"I will update the House of Commons on our plans to continue protecting jobs throughout the winter," he said in a tweet last night.
The BBC reports he is understood to be looking at options including a salary top-up scheme, similar to those already operating in France and Germany.
It comes as the Treasury announced there would be no budget this autumn.
"Now is not the right time to outline long-term plans - people want to see us focused on the here and now," it said in a statement.
It will instead launch a "Winter Economy Plan" after MPs and unions warned of the risk of a "tsunami" of job losses.
He is due to appear in the House of Commons at around 11.45am today.
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Reaction
Riviera Travel chair Andrew Strong said: "The outbound travel sector is vital for the nation's economy and well-being.
"People will need us to bring them some joy next year through delivering the holidays that we know they have been missing. A smaller travel industry puts this in peril as well as thousands of direct and indirect jobs.
"Targeted assistance is needed so the regulated tour operator sector can survive and that consumers will be able to enjoy protected travel once the pandemic has passed.
"Without government support, I fear for some in our industry and I have been pressing the Chancellor for five actions to help save peoples’ future holiday choices."
Riviera's asks of the government are:
- Extend the furlough scheme in a very targeted way to help the outbound travel industry. Recognising that most of the volume for travel will probably not now happen until spring 2021, a scheme to help maintain employees throughout the whole of this period.
- An extension of the Business Rate exemption for travel and leisure next year.
- Extend the deferred VAT scheme and avoid the requirement to pay outstanding amounts next Spring in one go.
- Make it "crystal clear" that passenger monies held by travel businesses under an Atol are protected by government backing.
- Help the travel industry by giving government support to underwriting travel insurance for pandemic risk. In the same way that the government has previously assisted on areas of uninsurable risk, the travel industry needs help in this crucial area to restore consumer confidence.
