Aerospace Industry and Aviation: Coronavirus

Treasury written question – answered on 20th January 2021.

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Photo of Jack Lopresti Jack Lopresti Conservative, Filton and Bradley Stoke

To ask the Chancellor of the Exchequer, what plans his Department has for sector-specific support for the aviation and aerospace industries to offset the effect on them of national lockdowns and travel bans during the covid-19 outbreak.

Photo of Kemi Badenoch Kemi Badenoch The Exchequer Secretary, Minister for Equalities

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. The aerospace sector and its aviation customers are being supported with over £11 billion support through the Bank of England’s Covid Corporate Financing Facility, grants for research and development, and committed loan guarantees for aviation and aerospace exporters. This includes over £8bn of UK Export Finance Guarantees.

The Chancellor also announced on 17 December that the CJRS will be extended until April, with employees receiving 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month. This will continue to protect jobs and businesses across the UK in light of recent developments in the path of the virus.

The Airport and Ground Operations Support Scheme announced on 24 November will also 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 is intended to help reduce cash burn and could unlock shareholder and lender support.

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