Industry associations have again called for targeted support for the travel sector after UK prime minister Boris Johnson last night announced a new national lockdown for England which will last until mid-February at the earliest and probably longer as the UK’s vaccination programme is rolled out.
The lockdown means travel is again restricted although trips for work, both domestically and internationally, are permitted under the new rules coming into force today. However, restrictions due to the new variant of the Covid virus means business travel is very limited, particularly in Europe.
The UK's chancellor of the exchequer Rishi Sunak has today announced one-off grants for closed businesses (per location) of up to £9,000 as part of a £4.6 billion support package but many say this does not go far enough.
Julia Lo Bue-Said, chief executive of the Advantage Travel Partnership, said, “For business travel this third lockdown creates even further uncertainty, however we are confident our business travel agents will be best placed to support their corporates with robust travel programmes and product relevant for a business traveller as we exit the pandemic; offering a high-touch and personalised approach helping businesses navigate through complexities of travel policies, duty of care, individual country protocols, border restrictions and of course travel in Europe due to Brexit.
“However, for now, another lockdown brings even more frustration for a sector that has received very little government financial support and whilst furlough has been used extensively throughout our business travel network they have been unable to qualify for grants.
“In addition, the government’s reluctance to test at points of entry through the introduction of safety protocols could enable business travel to resume safely and help kick-start the economic recovery for which business travel plays such a critical role.”
The HBAA's consultant executive director Juliet Price said the new lockdown could see some venues and agencies close permanently.
“Despite the bounceback loans and furlough extension, they cannot survive without any income for almost a year," she said.
“It is now essential that the government immediately provides the industry with comprehensive and consistent financial support, accessible to the full range of affected businesses, which HBAA and other industry associations have campaigned for throughout the pandemic.
“The Treasury‘s announcement today that it is making money available to the hospitality sector as one-off grants, with more money for local authorities to cover other businesses, is welcome and we hope that most events organisations and all those in the supply chain will be eligible."
An ABTA spokesperson said: “It’s right, of course, that the government takes steps to control the spread of the virus. But this needs to come with the right measures to support travel businesses which have little or no means of operating. For ten months now, many travel businesses have been unable to generate income – putting jobs and businesses at risk – and the latest government measures mean this is unlikely to change soon.
“Yet, unlike other sectors such as hospitality, there hasn’t been any tailored financial support from the UK government to get travel businesses through the crisis. Other countries, including France and Italy, have established targeted schemes in recognition of the unique challenges facing travel. Similar recognition and support is long overdue from Westminster, and we urge ministers to address this gap urgently.”
Karen Dee, chief executive of the Airport Operators Association, said: “While airports understand the public health reasons behind the renewed lockdown, this is yet another devastating blow to airports. It comes on top of the EU’s ban on UK nationals travelling to the EU for non-essential purposes.
“We are fast approaching a full 12 months of aviation being effectively shut down, with only limited support for UK airports provided to date. The government must urgently announce a comprehensive aviation support package, allowing the sector to weather the current dire financial circumstances while protecting jobs and aviation connectivity.
“The UK aviation industry will play a crucial role in enabling the UK’s economic recovery and Global Britain, but can only do so if it gets the support necessary to get through the coming months and years.”