The UK government has rejected a call to extend the furlough
scheme for the travel sector beyond the end of October.
The news came in the official government response to a petition
created at the beginning of September which has attracted more than 50,000
signatures. Britain’s MPs have also called for an extension.
In its response, the government said it recognised
the challenging times facing the travel industry and its importance to the UK economy.
However it said it “would be difficult to target the Coronavirus
Job Retention Scheme [the furlough scheme] at specific sectors without creating distortions,
particularly since many firms work across multiple sectors”.
It added that travel companies could still access the Coronavirus
Business Interruption Loan Scheme and would also be able to claim under the Job
Support Scheme if they meet the eligibility criteria.
The government said it would only consider bespoke financial
support as a last resort and then only on a basis which protected taxpayers’ interests.
The news came as agents’ association ABTA said that more than 90,000 jobs across the travel
sector are already lost or at risk. It said that in August, only 28 per cent of
previously furloughed staff had returned to work, and that nearly 80 per cent of
businesses anticipated having to let staff go in the
coming months.
ABTA chief executive Mark
Tanzer said: “The travel industry was the first to be affected by the
coronavirus crisis and will be the last to recover.”
He added, “While we recognise that the government
is attempting to offer some ongoing salary support through the new Job Support
Scheme, in reality, it offers little help for travel businesses as they aren’t
able to generate the revenue needed to cover the cost to employers.”
In an opinion piece for City.AM this morning, Clive Wratten, chief executive of the Business Travel Association, said that research among its members showed that the scheme would only save just one job per business travel company.