Budget Statement

Baroness Doocey Excerpts

Friday 12th March 2021 Lords Chamber

[Baroness Doocey (LD)]

My Lords, much of the tourism sector has fallen through the cracks of government funding for business during the pandemic. Touring coach operators, English language schools and event organisers are not eligible for leisure and hospitality grants, despite the fact that they bring in £15 billion a year, which is half of all inbound tourism revenue. The Budget has not changed that, so will the Government ask councils to prioritise some of the £425 million in new ARG grants specifically to those sectors and agree to include those businesses in the extended business rate and start-up grants? The details of those grants have not yet been announced, but it is essential the Government do not make the same mistakes as we have at the moment.

For example, a travel agent who sells a ticket to a customer for a tour is eligible for support, but the tour or coach operator who actually takes the customer on the tour is not. Children’s nurseries are eligible for support, despite the fact that they are open, but language schools, which have had to close, are not, despite the fact that they host half a million overseas students a year and bring in £1.2 billion a year. Finally, car hire premises, which have been open all the time, are eligible for support, but coach hire premises, which were forced to close and have seen their business decimated, are not. Frankly, you just could not make it up.

I make a plea to the Government urgently to address those anomalies and target support to those businesses, which bring in £15 billion a year in export earnings, employ 250,000 people and are hanging on by just a thread.

Covid-19: Economy

Baroness Doocey Excerpts

Thursday 4th June 2020 Lords Chamber

[Baroness Doocey (LD)]

My Lords, we urgently need to repair the tourist economy, not least because no region or nation of the UK has less than 100,000 tourism-related employees. The combined £34 billion spent every year in poorer, rural and seaside areas is a significant transfer of wealth from better-off, urban areas. The £20 billion that tourism contributes to rural economies is only slightly less than the £24 billion contribution from agriculture.

I want to highlight two issues. First, we can already meet outdoors with up to six people from different households, and non-essential shops and amusement arcades will soon open, increasing the level of contact. Yet the Government are not reopening caravan parks, where families who have been in the same bubbles throughout the pandemic can holiday safely. Caravans themselves have to be, by law, six metres apart, so they are well prepared for people to holiday while keeping away from other families. Why not allow caravan parks to open?

Secondly, self-catering holiday businesses are really suffering. Most are micro-businesses, but those that operate as limited companies have found that the family is not eligible for self-employed support, while those that are sole traders have been told by HMRC that their revenue is the product not of work, but of property investment. Yet HMRC’s own rules for furnished holiday lettings say that self-catering properties made available for at least 210 days a year and let for 105 days are classified as trading businesses. There is a complete mix-up here and the Government really must resolve this problem as soon as possible. I hope the Minister will address both issues when he responds.