The Business
Travel Association (BTA) has said the industry is in need of a ‘parachute
package’ of UK government support measures to save 10,000 jobs.
Writing to
chancellor Rishi Sunak, transport secretary Grant Shapps and business secretary Alok Sharma, BTA chief executive Clive Wratten called for measures
such as financial aid to cover 60 per cent of TMC employees’ salaries until at
least the end of 2020, with all money to be repaid through 10 per cent of companies’
profits each quarter, as well as a 12-month business rates holiday.
Wratten also
requested a 12-month suspension of Air Passenger Duty (APD) to help stimulate consumer demand, with premium
economy seats – often popular among business travellers – no longer classed in the same band as first and business class.
He said that when APD is restored after a year, at least 50 per cent of the
money earned by the government through the tax should be ‘ringfenced’ for
investment in environmental measures such as the development of aviation
biofuels.
“Our industry
plays a crucial role in helping British business travel and trade and, until
demand returns, we urgently need government support to help us survive,”
Wratten said.
“Targeted
and limited government backing for the business travel sector will not only
save many jobs in our industry, but underpin one of the vital support pillars
for British business as a whole.”
The BTA
pointed out that sectors such as hospitality have been able to take advantage
of a business rate holiday, while some leisure travel agencies have received
support due to the fact that many have a high street presence, but so far there
have been no targeted measures for TMCs and the business travel industry.