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COVID-19 Update 11th January 2021

  • Perceptions of the Future

ONS has published a survey of public actions over the Xmas period and perceptions regarding the future. While this survey was undertaken before the new lockdown, the perceptions regarding how soon the UK will get back to normal will have implications for holiday booking patterns this year. In this regard the main findings are:

    • A quarter of adults (25%) felt that life will return to normal in six months or less, compared with 22% the week before.
    • One in five (20%) adults felt that it will take more than a year for life to return to normal, compared with 23% the week before.

So, while there was some improvement in perceptions, it is concerning it tourism terms that only a quarter of people feel that life will return to normal before July and indicates that considerable work will need to be undertaken to increase consumer confidence.

https://www.ons.gov.uk/peoplepopulationandcommunity/healthandsocialcare/healthandwellbeing/bulletins/coronavirusandthesocialimpactsongreatbritain/8january2021

 

  • Removing Double Domestic APD to boost Tourism

I’ve attached a one page briefing from Airlines UK regarding the opportunity that has arisen from the UK leaving the EU to remove the double taxation on domestic air travel in the UK. Under EU rules, APD had to be charges on each departure from a UK airport so the tax on a return flight within the UK is twice what it is for a return flight to any other European destination. This has had a significant impact on the viability of domestic aviation routes and put UK destinations at a competitive disadvantage to European counterparts.

    • Since being introduced in 2006, domestic connectivity  has fallen by 27%.
    • Domestic passenger has fallen from 26.1 million in 2005 to 22.4 million in 2019
    • Prior to its collapse, APD represented 20% of Flybe average fare.

Removing this anomaly would put UK destinations on a level playing field with European competitors and help rebuild domestic tourism.

 

  • Summary of Existing Financial Support

HMT has published a summary of all the support that is available, This is a really useful summary and has links to all the separate support mechanisms under the following categories:

    • Employees
    • Businesses
    • Unemployed
    • Low income families
    • Local Authorities
    • Devolved Administrations

https://www.gov.uk/government/publications/summary-of-existing-economic-support/summary-of-existing-economic-support

 

  • Apprenticeships Guidance Update

DfE have updated their guidance to businesses that are operating apprenticeship schemes with new guidance on remote provision and assessment in relation to the new lockdown and updated guidance on training and assessment in the workplace and educational settings.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/950845/Apprenticeship_response_to_COVID-19_FINAL.pdf

 

  • R Number

As usual for Friday, here are this week’s R Number and Growth rate. The R Number 1.0 to 1.4 and the growth rate range for the UK is 0% to +6%. This is relatively the same as just before Xmas when the figures were, respectively, 1.1-1.3 and +1% to +6%

https://www.gov.uk/guidance/the-r-number-in-the-uk

Airlines UK Briefing note - double domestic Air Passenger Duty
agto@agto.co.uk
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