Government to pay salaries to prevent redundancies
The Government has ramped up its coronavirus support for businesses, promising to pay 80% of the salaries of staff who aren’t needed at work during the current crisis.
Chancellor Rishi Sunak said companies of any size would be eligible for grants to cover staff costs, which will be back dated to March 1 and will be available for at least three months, possibly longer.
The government will cover 80% of an employee’s normal salary, up to a maximum of £2,500 per person per month, which Sunak said was just above the average wage, as long as companies keep them on their books.
Sunak pleaded with companies to look at the support available before laying off staff.
His announcement came just after Hays Travel, the largest travel retailer, announced it was placing 880 staff on zero hours contracts and cutting the working hours for the remainder of its workforce.
ABTA had only hours earlier warned the government that time was running out to save travel businesses, calling for a package of measures, including direct funding, tax holidays and a suspension of air passenger duty.
The Chancellor also announced today that it was extending the interest-free period on the government-backed business loans announced in the Budget from three to six months.
However, an ABTA spokesperson said the Association was still warning the Government that further action is needed.
It also wants temporary changes to the Package Travel Regulations to ease the financial burden on businesses of refunding thousands of holidays.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
In Italy, the Meloni government congratulates itself for its tourism achievements
Singapore to forbid entry to undesirable travelers with new no-boarding directive