A travel ‘guarantee fund’ should be set up by government to help travel businesses survive the winter, according to consumer group Which? ahead of a month-long lockdown.
The suggestion came as travel agents in England were told to shut for four weeks from Thursday alongside other ‘non-essential’ retailers as part of the latest lockdown measures being imposed to combat a second wave of Covid-19.
The government also confirmed that “overnight stays and holidays away from primary residences will not be allowed – including holidays in the UK and abroad”.
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The Treasury sought to mitigate the impact of the lockdown by maintaining the furlough Coronavirus Job Retention Scheme (CJRS) until December.
Employees will receive 80% of their current salary for hours not worked, up to a maximum of £2,500.
Flexible furloughing will be allowed in addition to full-time.
But the sudden revival of the furlough scheme in place of the planned Job Support Scheme drew criticism.
Advantage Travel Partnership chief executive Julia Lo Bue-Said said the extension of furlough was “more tokenistic than helpful” and called for the chancellor to “urgently consider an extension of the provision of government underwritten loans” and a tax holidays of six months for the travel industry.
She said: “These measures could mean the make or break for many travel agents up and down the country.”
Miles Morgan Travel chairman Miles Morgan tweeted: “All the hours planning how we were going to handle staff working on JSS have been a waste of time, with a days notice. These guys have never run a business have they! Total joke.”
A two week window of bookings when Spain opened up in July. The Canaries has lasted no longer than that, travel businesses have had no income since March. Where is the support @RishiSunak? Please don’t say furlough and JSS, that is not the solution for travel. #sectorsupport
— Miles Morgan (@MMTMan) November 2, 2020
In a second tweet, he said: “A two week window of bookings when Spain opened up in July. The Canaries has lasted no longer than that, travel businesses have had no income since March. Where is the support RishiSunak? Please don’t say furlough and JSS, that is not the solution for travel.”
EasyJet echoed aviation industry concerns over the new travel restrictions with a demand for specific sector support.
Chief executive Johan Lundgren said: “Given the steps the government has taken, which essentially prevents air travel in the UK, our call for sector specific support has never been more urgent.
“The government has recognised the need to directly support the hospitality sector, where decisions have directly affected its ability to trade.
“The same principle needs to be applied to aviation. The government’s own statistics show that activity in aviation is already 90% down on pre-pandemic levels, yet to date the government has still failed to provide any sector specific support.”
Airlines UK backed the plea, saying: “Aviation has been devastated by the pandemic, and has essentially never had the opportunity to recover.”
The aviation trade body called for “a comprehensive restart package” for the industry.
Airlines UK chief executive Tim Alderslade and Karen Dee, chief executive of the Airport Operators Association, described the lockdown announcement as “a 180-degree reversal of policy,” since the government added the Canaries to the travel corridors list just the previous week.
“A ban on international travel means airlines and airports, already hamstrung by quarantine, are closed businesses and will require financial support now – which other sectors like hospitality have received – alongside a comprehensive restart package,” they said.
“This needs to include immediate additional economic support for the winter and steps to support recovery, including urgent roll-out of a testing regime, business rates relief for airports, and an emergency waiver of Air Passenger Duty that will be essential for enabling and stimulating international travel – absolutely vital for the UK economy – for as long as we are living with this virus. Hundreds of thousands of jobs and our economic recovery are on the line.”
MP Henry Smith, chair of the all-party parliamentary group for the Future of Aviation, also called for financial support.
He said the travel ban “is another serious blow to the already beleaguered aviation, travel and tourism industries, its employees and the communities who rely on them.
Smith reiterated “the need for immediate financial support to help our aviation industry survive the brutal reality they face”, adding: “We can’t have a global Britain without a thriving aviation sector and the consequences of failing to act to protect them are simply unthinkable.”
Which? Travel editor Rory Boland said: “Millions of people were left struggling to get refunds for cancelled flights and holidays when the government banned international travel back in March.
“Many still haven’t been refunded. As travel restrictions are re-introduced in England, the government and regulator must do a better job of ensuring customers aren’t again left to bail out companies through refunds being unlawfully withheld.
“The pandemic has wreaked havoc on the travel industry, and urgent support is needed if it is to survive the winter.
“We are urging the government to introduce a travel guarantee fund to ensure travel companies who are ordinarily in good financial health can meet their obligations to customers.”
The latest restrictions amplified the “urgent need” for a package of measures to support the UK aviation industry, Heathrow said.
“This package will need to include policies that reduce costs and accelerate the sector’s recovery, such as business rates relief for airports and the implementation of a testing regime for passengers,” the London airport said.
“Without targeted support to help protect the UK’s aviation industry, tens of thousands of jobs across the country will be lost.”
Warner Leisure Hotels will shut its properties from November 2 until December 3 and postpone all breaks due to the national lockdown.
Addressing the extension of furlough, the Treasury said: “Under the extended scheme, the cost for employers of retaining workers will be reduced compared to the current scheme. This means the extended furlough scheme is more generous for employers than it was in October.
“In addition, business premises forced to close in England are to receive grants worth up to £3,000 per month under the Local Restrictions Support Grant.
“Also, £1.1 billion is being given to local authorities, distributed on the basis of £20 per head, for one-off payments to enable them to support businesses more broadly.”
Business grants will also be made available to firms force to shut, with amounts available dependent on the rateable value of properties.
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