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Aviation: Finance

Question for Department for Transport

UIN 85062, tabled on 4 September 2020

To ask the Secretary of State for Transport, what recent discussions he has had with the Chancellor of the Exchequer on the Government's financial support for the aviation sector.

Answered on

14 September 2020

The Department for Transport is in regular contact with HM Treasury regarding the challenges facing the aviation sector as a result of COVID-19. The sector is crucial to the UK’s economy and businesses across the industry are able to draw on the unprecedented package of economic measures we have put in place during this time.

This includes a Bank of England scheme for firms to raise capital and the Coronavirus Business Interruption Loan Scheme which facilitates access to finance for businesses affected by the outbreak. HMRC is also ready to help all businesses and self-employed individuals, experiencing temporary financial difficulties due to coronavirus.?You can access their “Time to Pay” arrangements, which eases restrictions with tax bills and VAT deferrals.

The Government is also ensuring financial support for employees through the Coronavirus Job Retention Scheme covering 80% of furloughed employees’ usual monthly wage costs, up to £2,500 a month, alongside the associated Employer National Insurance contributions and pension contributions.