Chancellor’s job measures fall short to rescue Scotland’s tourist industry

Rishi Sunak. UK Chancellor

CHANCELLOR Rishi Sunak’s measures announced today “fall some way short” of what is urgently needed to rescue Scotland’s tourist industry, according to a trade body.

The Scottish Tourism Alliance said that many tourism businesses would miss out to change the Jobs Support Scheme.

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STA chief executive Marc Crothall said: “The Jobs Support Scheme will only help businesses which have sufficient demand to pay these minimum hours; the majority of tourism businesses simply will not be able to do so as their businesses are either closed due to legislation or restrictions.

“This continues to create pressure on the payroll at a time when consumer confidence and demand for the services which the tourism sector offers is at an all-time low, coupled with the increased restrictions in place.

“There is not enough work for people in our sector and employers cannot afford to pay staff when there is no work so we can still expect to see mass redundancies.”

He said the impact of extending the current 5% VAT until March 2021 would only have “marginal” effect on the Scottish tourism industry “given that so many businesses will now be forced to make redundancies and close their doors for good.”

He added: “News of the loan repayment extension, Pay as you Grow, and the extended opportunity for businesses to continue to apply for loans as a last resort, with the knowledge of there being less pressure on repayment timelines will be welcomed by many but sadly, it just won’t go far enough to protect and save our industry from significant decline.

“I know so many businesses within the tourism industry and supply chain were hopeful that today’s announcement would offer an immediate life-line, especially those businesses who have not been able to restart or have been significantly impacted by the loss of the international market.

“The reality we must all face now is that within the coming days and weeks, businesses owners will lose their livelihoods, thousands will lose their income and the effects on the economy and people’s lives will be nothing short of devastating.”

 

 

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