Abta says further legal action against the government “remains an option” after agents’ group Target called on the association to clarify its intentions on the matter.
In May, Abta sent the government a ‘letter before claim’ advising of its intention to take legal action to challenge the ‘inadequacy’ of its financial support of the travel sector, in particular its Restart Grants for retailers.
The letter is a requirement for judicial review proceedings and identifies legal issues in dispute and was sent after continued pleas to government to provide higher Restart Grants for travel agents and extended financial aid for the sector.
Abta began talks with specialist solicitors in April as it considered legal action on the issue.
Target, which has more than 2,200 followers on its Facebook group, today questioned why there has been no updates from Abta on the matter of legal action three months on from the ‘letter before claim’.
Co-founder Graeme Brett, director of Westoe Travel, said: “Travel Agents are facing a doomsday scenario next month including the ending of furlough, payment of loans commencing, the loss of the summer season, deferred VAT payments due, rent and business rates returning to normal levels, Abta membership fees now being due in January and difficulties obtaining bonding.
“Travel Agents are having to make critical and life-changing decisions about their businesses. They need to know if there is a glimmer of hope that there is a legal challenge or it they have to make those challenging decisions. They cannot wait any longer for an answer.”
An Abta spokesman said: “The slow and cautious restart of international travel means travel businesses remain under enormous financial pressure, with some facing very difficult decisions if the situation doesn’t improve or tailored support isn’t provided.
“Calling for tailored financial support has been a big priority for our work throughout the pandemic – including grant support and extending general support measures for travel companies, such as furlough and business rates relief.
“Following pressure from Abta, general grant support has been made more available for travel companies, including the government saying in June that travel agents and tour operators should have access to the Additional Restrictions Grants.
“But the UK government is yet to come forward with a specific and targeted package of support for the travel industry, meaning despite restrictions on trade and low consumer confidence, travel businesses still face the same rising furlough costs as other business sectors and the end of the scheme in September.
“Abta, with its external lawyers, continues to explore all legal avenues to challenge the government, taking into account the latest response from government following our ongoing legal correspondences and the developing situation around international travel. Further legal action remains an option.”