New chancellor Rishi Sunak delivered his first Budget last week, in which he announced a temporary abolition of business rates, greater access to loans and grants, and sick pay refunds for companies whose employees have to self-isolate.
Deben Travel’s Lee Hunt said: “Thank the Lord for some good news – I’ve been hoping for a review of business rates for a long time. I only expected a reduction, so the fact they will be stopped [temporarily] is really good. It will make a massive difference to our business.”
Gary Lewis, chief executive of The Travel Network Group, said the announcement of the Coronavirus Business Interruption Loan Scheme was a “huge” signal of support.
“However, ensuring the right money is going to the right businesses as quickly as possible is paramount, and could very easily be a challenge too far for many businesses starved of cash,” he said. “While the temporary relief of business rates is welcomed, the need for this measure has been evident for years.”
The one-year abolition of business rates will affect high street agencies with a rateable retail value below £51,000. Miniples, though, are unlikely to benefit from the move, said Miles Morgan, managing director of Miles Morgan Travel.
“Does this help medium-sized businesses? Absolutely not,” he told TTG. “The real problem is the rateable value formula – it needs to be changed to help us out.”
The aviation sector, meanwhile, hit out at the government’s failure to offer any support to airlines, with Sunak ignoring calls for Air Passenger Duty to be suspended for several months.
“The entire aviation industry will be deeply frustrated the chancellor has shown zero support to a vital sector,” said Dale Keller, chief executive of airline association BAR UK.
See our updated guide on Covid-19 booking policy changes from airlines, operators and cruise lines.
