Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what new fiscal steps he plans to take to support the aviation sector in response to the potential economic effects of the Government’s hotel quarantine policy on that sector.

The Government recognises the challenging circumstances facing the aviation industry as a result of Covid-19 and firms experiencing difficulties can draw upon the unprecedented package of measures announced by the Chancellor, including schemes to raise capital and flexibilities with tax bills. The aerospace sector and its aviation customers are being supported with almost £11 billion made available through loan guarantees, support for exporters, the Bank of England’s Covid Corporate Financing Facility and grants for research and development. This includes £8bn of UK Export Finance Guarantees.

The Chancellor also announced on 17 December that the CJRS will be extended until April, with employees receiving 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month. This will continue to protect jobs and businesses across the UK in light of recent developments in the path of the virus.

The Airport and Ground Operations Support Scheme announced on 24 November will also provide support for eligible businesses, up to the equivalent of their business rates liabilities in the 2020/21 financial year, subject to certain conditions and a cap per claimant of £8m. This is intended to help reduce cash burn and could unlock shareholder and lender support.