Rishi Sunak is urged to extend the furlough scheme for the travel sector in letter signed by 77 MPs and peers who warn industry is facing a ‘cliff edge’ and jobs bloodbath in the autumn
- 77 MPs and peers warned industry is facing a ‘cliff edge’ at end of September
- They said case for extending furlough scheme until March 22 is ‘irrefutable’
- Some 57 per cent of air transport workers remain on furlough, according to ONS
Rishi Sunak was last night urged to extend the furlough scheme for travel sector workers or face a jobs bloodbath this autumn.
In a letter to the Chancellor, 77 MPs and peers warned the industry is facing a ‘cliff edge’ at the end of September as the furlough scheme will finish but travel restrictions will continue.
They said the case for extending the Coronavirus Job Retention Scheme for the sector until March 2022 is ‘irrefutable’ as without action ‘significant redundancies will become a devastating reality’.
In a letter to the Chancellor, 77 MPs and peers warned the industry is facing a ‘cliff edge’ at the end of September as the furlough scheme will finish but travel restrictions will continue
Some 57 per cent of air transport workers remain on furlough, according to the Office for National Statistics. Unemployment is already a third higher across all ‘aviation communities’, which rely on the jobs created by local airports and other air transport businesses.
Those that signed the letter to Mr Sunak include Liberal Democrats leader Sir Ed Davey, former Tory ministers Steve Baker and Esther McVey, and chairman of the foreign affairs committee Tom Tugendhat.
The letter warned: ‘With a lost summer season coming on top of the worst fifteen months in the history of UK aviation, without continuing support though the Coronavirus Job Retention Scheme, the risk of significant redundancies will become a stark and devastating reality.
Those that signed the letter to Mr Sunak include Liberal Democrats leader Sir Ed Davey, former Tory ministers Steve Baker and Esther McVey (pictured), and chairman of the foreign affairs committee Tom Tugendhat
‘We urge you to not only extend the scheme but to work with the industry to provide further much needed financial support.’ Testing and self-isolating rules for Britons and foreign visitors entering the UK are likely to continue for some time.
The letter to Mr Sunak was arranged by Tory MP Henry Smith, chairman of the all-party Future of Aviation group. He said the recovery of the industry is ‘being held back by the UK’s approach to international travel and as such they have an obligation to, and must, protect these jobs until restrictions are removed’.
A Government spokesman said eligible businesses in the industry will ‘continue to benefit from a reduced rate of VAT until March 2022’ and can continue to access the Recovery Loan Scheme.