To ask the Chancellor of the Exchequer, what discussions he has had with Cabinet colleagues on the potential merits of introducing an aviation recovery package.
Answered on
24 February 2021
The Chancellor regularly discusses a wide range of matters related to economic recovery with Cabinet colleagues.
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. In addition to economy-wide measures such as the Coronavirus Job Retention Scheme, 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 guarantees provided by UK Export Finance.
In addition, the Airport and Ground Operations Support Scheme launched on 29 January 2021 will 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 will help companies with their fixed costs and could unlock shareholder and lender support.