Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to encourage businesses in the aviation sector not to make staff redundant as a result of the covid-19 outbreak.

The Government recognises the challenging times facing the aviation sector as a result of COVID-19 and the Chancellor wrote to the aviation sector on 24 March to set out the Government’s position and the support measures available. The Government has announced an unprecedented package of support for workers and businesses to protect against the current economic emergency.

This includes the Coronavirus Job Retention Scheme, which help firms to retain employees. This Scheme allows businesses to put employees on temporary leave, with the Government paying cash grants of 80% of their wages up to a cap of £2,500 per month, providing the business keeps the person employed. On 12 May, the Government announced a major extension to the CJRS which will continue to the end of October, including more flexibility and employer contributions from August as people return to work.

The Government is prepared to enter negotiations with individual companies seeking bespoke support as a last resort, having exhausted other options. However further taxpayer support would only be possible if all commercial avenues have been fully explored, including raising further capital from existing investors and discussing arrangements with financial stakeholders. Any intervention would need to represent value for money for taxpayers.