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Travel: Coronavirus

Question for Treasury

UIN 155089, tabled on 19 February 2021

To ask the Chancellor of the Exchequer, when he plans to publish information on the revenue that has not accrued to the public purse as a result of the effect of the covid-19 outbreak on the travel sector.

Answered on

25 February 2021

The Government recognises the challenging circumstances facing the travel sector 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, flexibilities with tax bills and the extended furlough scheme.

As set out in the Covid-19 Impact Assessment last November, the Government cannot forecast with confidence the precise impact of specific changes to restrictions, including those on the travel sector, as this will depend on a broad range of factors which are, in many cases, difficult to estimate. The Treasury does not prepare forecasts for the UK economy and public finances, these are the responsibility of the independent Office for Budget Responsibility (OBR).

The economic impacts of the Covid-19 pandemic and the unprecedented fiscal support has caused significant but necessary increase in borrowing and debt. However, borrowing costs continue to be low, making the current costs of servicing this increase in debt affordable.

The Budget will set out the next phase of the plan to tackle the virus and protect jobs.

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