Outrigger Hotels and Resorts

Published on Wednesday, September 8, 2021

Chancellor rejects latest plea for travel industry furlough extension

Chancellor Rishi Sunak has rejected pleas for a sector specific extension to the furlough scheme.

Sunak confirmed there would be no special treatment for aviation and the travel industry in a written response to Henry Smith MP, chair of the APPG for the future of aviation.

The APPG had called for an extension until March and grants for the industry.

"It would be challenging to target the CJRS to specific sectors in a fair and deliverable way and it may not be the case that this is the most effective or sensible way to provide support for those sectors most affected by Covid-19," Sunak said.

"Grant support is a devolved policy area and the UK government has decided in England it is preferable to provide local authorities with funding at a scale, and with the flexibility they need to best support their local economy, rather than create several dedicated grant funds, such as one for the travel sector."

"Further funding has been made available via the Additional Restrictions Grant (ARG) to support those businesses that have had their trade adversely affected."

The ARG is a discretionary fund administered by local authorities.

Snak said local authorities were allocated an extra £2 billion in additional funding to support hard hit local businesses.

According to a survey commissioned by personal finance firm NerdWallet, about one quarter of all workers fear for their jobs when the furlough scheme ends at the end of September.


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