To ask the Chancellor of the Exchequer, if he will make an assessment of the financial effect on the Exchequer of reduced income from the travel sector during the covid-19 outbreak.
3 March 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 OBR’s latest forecast (March 3) highlighted that
the economic impacts of the Covid-19 pandemic and the unprecedented fiscal support has caused significant but necessary increase in borrowing and debt.