Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department plans to take to provide adequate support to travel agencies that are obliged to issue reimbursements as a result of short notice changes in covid-19 restrictions.
We recognise that these are very challenging conditions for businesses in the travel sector, including travel agents, which is why we have provided a range of measures to support the sector. On top of our wider economic support package, we have provided business rates relief and one-off grants for eligible hospitality and leisure businesses – and we have cut VAT for tourism and hospitality activities from 20% to 5% until the end of September. In order to help businesses manage the transition back to the standard rate, a 12.5% rate will then apply for a further six months.
We are working closely with the Department for Transport and the Department for Digital, Culture, Media & Sport to support the reopening of international travel, in line with the Government’s reopening roadmap and the work of the Global Travel Taskforce.