Call to extend furlough scheme for aviation and tourism industries

The Government should extend the furlough scheme for the aviation, travel and tourism industries, Crawley’s MP has argued.
Aircraft grounded at Gatwick Airport (Photo by BEN STANSALL/AFP via Getty Images)Aircraft grounded at Gatwick Airport (Photo by BEN STANSALL/AFP via Getty Images)
Aircraft grounded at Gatwick Airport (Photo by BEN STANSALL/AFP via Getty Images)

The Government should extend the furlough scheme for the aviation, travel and tourism industries, Crawley’s MP has argued.

Henry Smith, whose constituency covers Gatwick Airport, has led a group of cross-party MPs in writing to Chancellor Rishi Sunak pointing out the exceptional circumstances facing these sectors, which could take significantly longer than other industries to recover.

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The letter asks the Chancellor to agree a customised and flexible extension to the furlough scheme for the aviation, travel and tourism industries.

Mr Smith, who chairs the Future of Aviation Group, said: “Our aviation, travel and tourism industries have been amongst the worst affected by the coronavirus and will take far longer to recover than most sectors.

“Aviation is an economic enabler and it will be central to rebuilding our economy. The Government must extend the Coronavirus Job Retention Scheme beyond October to support the millions of jobs in these sectors and to allow them to play their full role in our economic recovery.

“Cutting off this support before these sectors have been able to recover will have disastrous consequences for everyone in the country.”

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The furlough scheme, allows employees to receive 80 per cent of wages up to £2,500 a month, is set to end in October.

From August to October, workers on furlough will continue to receive 80 per cent of their salary, but the amount paid by the state will be reduced each month. Employers will be expected to make up the rest.

The letter explains that the air transport, travel and tourism sectors support more than four million jobs in the UK, which remain under pressure as a result of the impacts of the pandemic.

The signatories urge Mr Sunak to reconsider ending the furlough scheme for these sectors in October.

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The letter said: “We request that you engage with the sector, the businesses that depend on it, employment representatives and trade unions to agree a customised flexible extension to the scheme that considers the exceptional circumstances that aviation and its associated industries face.

“Such an extended and customised scheme for this sector will be essential to allowing our world class aviation sector to recover and play its full part in helping the overall UK economy to move forward.”

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