The extension of the UK government’s job support
scheme (JSS) does not go far enough for the travel sector and without
additional support further job losses will come in the weeks ahead, say industry leaders.
The JSS launches on 1 November replacing
the furlough scheme (officially the
Coronavirus Job Retention Scheme) and will last for
six months. Under the new scheme, intended to support employees to work part
time rather than being made redundant, companies will pay employees for time worked
but will get government support for a third of the hours they are unable to
work.
On Friday, the Chancellor of the Exchequer Rishi
Sunak announced a further expansion of the scheme to offer additional support for UK businesses required to close their premises due to
coronavirus restrictions. The UK government is expected to announce stricter regional lockdowns later today following a significant increase in Covid cases in certain parts of the country.
Sunak said in these cases the government would pay
two thirds of employees’ salaries in the event of being forced to close and
offer increased cash grants of up to £3,000 per month.
Sunak
said: “I have always said that we will do whatever is necessary to protect jobs
and livelihoods as the situation evolves. The expansion of the Job Support
Scheme will provide a safety net for businesses across the UK who are required
to temporarily close their doors, giving them the right support at the right
time.”
Some in the industry say the scheme does not go far
enough to protect jobs in the travel industry.
ABTA chief executive Mark Tanzer said: “The
Chancellor's announcement of an expanded version of the Job Support Scheme to
support businesses required to close due to local lockdowns does little for the
UK's £60 billion travel industry, or the close to one million people who work
in the sector.”
“For almost eight months the travel industry has
been hampered by the FCDO’s global advisory against all but essential travel,
ever-changing quarantine rules and the failure of the government to introduce a
testing regime which would help to reopen many destinations.
“The announcement of a global travel taskforce
this week is recognition of the difficulties facing businesses across the
travel industry. However, we cannot afford to wait weeks for additional help.
It is vital that the government acts fast to help struggling travel businesses,
and their staff. Without additional support we will see further job losses in
travel over the weeks ahead, in addition to the more than 100,000 roles that
have already been lost or at risk as a result of the crisis," he added.
Clive Wratten, CEO
of the Business Travel Association, who predicted in June that
50 per cent of jobs in the business travel sector were at risk, said: “The BTA welcomes the Chancellor’s decision to provide
tailored support for the regions most affected by Covid-19, and urges him to
also consider the most impacted sectors. This needs to happen without delay to
save vital industries such as the business travel sector.”