COVID-19 Updates – week commencing 14/12/20
More updates of developments from the government and various links to interpretation and guidance.
Go to date:
14 December 2020 …
Tourism Alliance update:
As you will be aware, the Tourism Alliance has worked with the Cut Tourism VAT Campaign for many years in order to reduce the rate of VAT applying to UK tourism and hospitality businesses from 20% to 5%. This would end the sector’s competitive disadvantage compared to other European countries, all of which (excluding Denmark) apply reduced rates to visitor accommodation, and most apply a reduced rate to attractions and meals as well.
In July 2020, taking on board the case that the Cut Tourism VAT Campaign has made over many years, the Chancellor cut VAT to 5% on tourism and hospitality as an emergency measure to counter the effects of Covid-19. As this reduction is due to be reversed in April 2021, we want to lobby Government ahead of next year’s spring budget that the 5% VAT rate on tourism and hospitality goods and services should be made permanent as it is good for the UK Government and British people.
Therefore, we are working with the Cut Tourism VAT Campaign and UK Hospitality to conduct a preliminary survey of tourism businesses to determine how they have benefitted from the VAT reduction and what the impact of reverting back to the 20% rate on 1 April 2021 would have on their future viability
Coach industry services are largely zero rated, but the Tourism Alliance is asking businesses who have indirectly benefitted from this cut to contribute to a short survey, this should take no more than 5 to 10 minutes and will greatly assist efforts to campaign for a permanent reduction, the survey can be found on the link below. All responses will be treated as confidential and anonymised.
https://www.surveymonkey.com/r/9CHZNCQ
Responses are required by end-of-business on FRIDAY 18th DECEMBER.
Self-Isolation Period Reduced From 14 to 10 Days
The Chief Health Officers of England, Scotland, Wales and Northern Ireland have published a joint statement that, having reviewed the evidence, the number of days that people need to self-isolate if they have come into contact with Coronavirus has been reduced from 14 days to 10 days from 00:01am on Monday 14 December in England, Scotland and Northern Ireland (this is already in effect in Wales). This reduction in the length of self-isolation also applies to people returning to the UK from countries that are not on the Air Corridors list – so that quarantine period will be 10 days or 5 days for those using the Test to Release option which starts on 15th December.
People who test positive should continue to self-isolate for 10 days from onset of symptoms or 10 days from point of taking a positive test if asymptomatic.
Test and Trace Support Payment Scheme Update
The Government has updated the guidance on the £500 Test and Trace Support Payment Scheme by adding that:
-
- In addition to the national criteria for receiving this payment, applicants may also have to meet additional locally set criteria, which are down to the discretion of each local authority
- If the NHS COVID-19 app has told you to self-isolate because you’ve been in close contact with someone who has tested positive for coronavirus, you will need to follow some additional steps to request your NHS Test and Trace Account ID.
Coronavirus cases by Local Authority
If you want to track coronavirus cases in your local area, the weekly updates have been produced. This will give you an indication as to whether to expect any change in the Tier level of your area when the review is undertaken next week.
R Number and Growth Rate
The R Number and growth rate figures are 0.9-1.0 and -2% to 0% respectively, which is a slight increase from last week’s figures of 0.8-1.0 and -3% to -1% but still indicates that that the spread of the disease is decreasing
https://www.gov.uk/guidance/the-r-number-in-the-uk
15 December 2020 …
Tourism Alliance updates:
With London and surrounding areas going into Tier 3 tomorrow it is worth noting that anyone currently on holiday within the area can remain until it is practical to return home. This is from the Visitor Economy guidance:
“At the time when restrictions are introduced, if people are currently on holiday in a group including people who are not in their household or bubble and it is not reasonable for them to curtail their stay, they may finish their holiday as planned but should follow the new social distancing rules as much as possible. However, for those placed under tier 3 restrictions, their stay should only be as long as reasonably necessary and they should return home as soon as practical. They should make every effort to reduce socialising indoors outside of their household whilst in holiday accommodation in the meantime.”
Areas Going Into Tier 3
The following areas will be going into Tier 3 from 00:1am on 16th December
London
-
- all 32 boroughs of London
Essex
-
- Basildon
- Braintree
- Brentwood
- Castle Point
- Chelmsford
- Epping Forest
- Harlow
- Maldon
- Rochford
- Southend-on-Sea
- Thurrock
Hertfordshire
-
- Broxbourne
- Hertsmere
- Three Rivers
- Watford
Not only will this be devastating for tourism and hospitality businesses in these areas which will have to close over one of the most important periods of the year, it will also impact on tourism businesses in many other regions of the UK as people in London, Essex and Hertfordshire will have to curtail their Xmas and New Year travel plans to between the Christmas bubble period of 22nd – 28th December
https://www.gov.uk/guidance/full-list-of-local-restriction-tiers-by-area
Here’s Matt Hancock’s statement to parliament
https://www.gov.uk/government/speeches/sharp-rise-in-coronavirus-numbers-and-a-new-variant
Tourism Recovery Plan
There is another Tourism Industry Council meeting tomorrow to discuss the Tourism recovery Plan that DCMS is developing. Ahead of this meeting, the Tourism Alliance submitted a revised paper to DCMS outlining the measures that need to be included in a tourism recovery plan that covers both domestic and international tourism.
Moving From 14 Day To 10 Day Self-Isolation
From today the self-isolation period is being reduced from 14 days to 10 days for both people entering the country from non Air Corridor countries and those needing to self-isolate in the UK after coming into contact with the disease. The is a large raft of guidance that has been updated to this effect so if you are working from downloaded versions of the Government guidance, just remember to keep this in mind.
16 December 2020 …
Tourism Alliance updates:
VisitBritain Forecasts
VisitBritain has published a new set of predictions for inbound and domestic tourism.
Inbound
VisitBritain’s forecast for 2021 is for a gradual increase in the value of inbound tourism during January to March 2021 with a step-change heading into Easter and the spring, if national restrictions are eased as expected, particularly from short-haul European markets. Overall, VisitBritain is forecasting 16.9 million inbound visits and spending of £9.0 billion in 2021
While a significant increase on this year, visitor number will only be 41% of the 40.9 million visits in 2019 while expenditure will be only 32% of the £28.4 billion the UK received in 2019
Domestic
The domestic tourism forecast from 2020 has been updated central scenario for England of £28.5 billion in domestic tourism spending in 2020, down 63% compared to 2019 when spending by domestic tourists in England was £75.9bn. This comprises £7.8bn from overnight tourism, down from £19.5bn in 2019, and £20.7bn from day trips, down from £56.5bn in 2019.
VisitEngland’s forecast for 2021 is for a recovery to £51.6bn in domestic tourism spending, which is up 82% compared to 2020 but still only 68% of the level of spending seen in 2019. This comprises £14.1bn in domestic overnight tourism spending (28% down on 2019) and £37.6bn in leisure day trip spending (33% down on 2019).
Test to Release Q&A
As you will be aware, the Test to Release option for people entering the country from non- Air Corridors countries came into effect today whereby people can reduce their quarantine time from 10 days to 5 days by undertaking a test. To help accommodation providers that are hosting guests using the Test to Release system, DCMS has produced the attached Q&A that addresses the how to provide services to these customers and the rules that cover their stay.
Also, DfT sent round a clarification note today saying that, for people using Test to Release system, the five day waiting period before being tested starts once the passenger leaves the country they’ve been in that warrants self-isolation, not when they arrive into England. So people travelling from countries such as the Philippines and Indonesia who can take 24 hours to travel to the UK may only need to wait four days before being tested.
In addition, the Government has also published a link to the private healthcare companies that will undertake tests under this system.=
Updated Tier Posters
The Posters with the rules and restrictions that apply in Tier level have been updated to incorporate all the new changes. As mentioned previously, these are an excellent quick reference guide for keeping both staff and customers aware of the rules in their area.
https://www.gov.uk/government/publications/tier-posters-medium-high-and-very-high
Income Tax And NI Exemption For Employer-Reimbursed Tests
HMRC has published a policy paper with proposals that where an employer reimburses an employee for the cost of a relevant coronavirus antigen test there will be no National Insurance contributions liability. The government also intends to legislate for an Income Tax exemption for employer reimbursements of the cost of relevant coronavirus antigen tests in the next Finance Bill.
This measure will have effect from 25 January 2021 until 5 April 2021.
- EU Settlement Scheme Covid Disruption Guidance
This will be of interest to businesses with employees from the EU, EEA and Turkey who are struggling to complete the paperwork or meet the necessary conditions to stay in the UK due to coronavirus. The Home Office has published a series of three guidance papers of what these employees need to do if they are facing problems
First there is guidance for EUSS applicants, both inside and outside the UK, who’s application has been affected by restrictions associated with coronavirus. The guidance explains what to do if:
-
- If you need to provide alternative evidence of identity and nationality, or entitlement to apply from outside the UK
- If you’re required to provide further information when making an application
- If your continuous qualifying period in the UK has been affected
https://www.gov.uk/guidance/coronavirus-covid-19-eu-settlement-scheme-guidance-for-applicants
Secondly, separate guidance has been produced for applicants for documentation issued under the Immigration (European Economic Area) Regulations 2016 who have been affected by Covid restrictions. This includes guidance on:
-
- If you need to provide alternative evidence of identity and nationality
- If your continuous residence in the UK has been affected
- Furloughed workers
- Retention of worker or self-employed status
- Self-sufficiency and access to benefits
The third one is guidance that has been produced for Turkish ECAA applicants, both inside and outside of the UK, who need to apply for leave and are affected by restrictions associated with coronavirus.
https://www.gov.uk/guidance/coronavirus-covid-19-turkish-applicants-for-uk-visas
Prime Minister’s Statement
The Prime Minister made a statement to parliament on 16 December with a number of messages related to activity over the Christmas break. The key points were:
-
- The review of current tier levels will be announced tomorrow
- The current rules regarding Christmas travel and Christmas bubbles will not change
- However, the Government want people to rethink their Xmas plans around the message that “a smaller Christmas is going to be a safer Christmas, and a shorter Christmas is a safer Christmas”.
- If possible don’t travel from a high prevalence to a low prevalence area and avoid staying away from home overnight if you can.
- No one should be gathering in large groups to see in the New Year
Higher-Level Restrictions Announced For Wales
The First Minister has announced that Higher-level restrictions will come into force to control rapidly accelerating coronavirus rates across Wales. The new restrictions will apply to all of Wales and are:
-
- All non-essential retail, including close contact services and all leisure and fitness centres will close at the end of trading on Christmas Eve.
- All hospitality premises will close from 6pm on Christmas Day.
- Tighter restrictions on household mixing, staying-at-home, holiday accommodation and travel will apply from December 28, after the five-day Christmas period.
- The tighter restrictions includes people only being able to meet as two households plus an additional single person household in Wales over the festive period.
https://gov.wales/higher-level-restrictions-come-force-control-coronavirus
List of Private Coronavirus Testing Businesses Updated
The list of private companies providing testing that can be undertaken as part of the Test To Release Scheme has been updated. I get the feeling that this could be a continually changing list so if you are providing accommodation for people using the scheme, it would be a good idea to bookmark the following link so that you keep up to date as providers are added and removed.
DfT Transport Figures
I’ve held off including these for the past month while we were in a national lockdown but it’s worthwhile including them again. This week’s update shows that people are travelling again after the lockdown but the level of travel has not increased a great deal – private vehicle use is only up 10 percentage points from the lockdown, national rail is up just 7 percentage points and bus travel is up just 9 percentage points – indicating both the greater number of areas now in tier 3 and a lack of confidence in people to undertake travel.
https://www.gov.uk/government/statistics/transport-use-during-the-coronavirus-covid-19-pandemic
17 December 2020 …
CPT updates:
CORONAVIRUS JOB RETENTION SCHEME EXTENDED AGAIN
The CJRS scheme has been extended until the end of April 2021
The Government will continue to contribute 80% of wages for hours not worked, up to the current caps
The Government backed loans schemes, CBILS and Bounce Back Loans will also remain open for applications until 31 March 2021
Further details can be found on the link below
CHRISTMAS TOURS – CURRENT POSITION
CPT has been working throughout today along with the Tourism Alliance and other sector groups to clarify the position taken by the Department for Digital, Culture, Media & Sport (DCMS) towards operating Coach Tours over the Christmas period
Hotels and other Accomodation suppliers have been lobbying Government for a relaxation of the rules over the Christmas period, and we have supported them in this
DCMS had earlier indicated that there would be a change to the guidance, but there are only minor changes that have been made to the travel giodance, and we do not believe that there will be any further changes
The position as we now understand it, is that the current Tier Guidance will remain throughout the Christmas period, and the Guidance for Forming a Christmas Bubble remains the same, that individuals can form a Christmas bubble, between 23 and 27 December with people from no more than three households
Travel is allowed between tiers and UK nations in order to join the Christmas bubble. A Christmas bubble can only meet in private homes or gardens, places of worship, or public outdoor spaces
Individuals can only meet people who are not in their Christmas bubble outside of the home according to the rules of the tier they are in
Therefore under the current rules for the three tiers in England, a Tour will be allowed between Tier 1 or 2, and another Tier 1 or 2 area. You can also transit a Tier 3 area to reach a Tier 1 or 2 area
Strong guidance remains that travel into or out of a Tier 3 area should not be undertaken, and that overnight stays should not take place
The most up to date guidance is available from the link below
CJRS and Loan Schemes Extended
The Government has announced that the extension of both the furlough scheme and the various loan schemes
-
- The furlough scheme has been extended until the end of April 2021 with the government continuing to contribute 80% towards wages and businesses contributing 20% of wages plus NI and Pension contributions
- The loan schemes, including Bounce Back loans and CBILS will be extended until 31st March 2021
The Chancellor has also announced that the Budget will take place on 3rd March 2021
https://www.gov.uk/government/news/chancellor-extends-furlough-and-loan-schemes
Changes in Tier levels
The fortnightly review of the tier levels has taken place and the following changes have been announced (all changes will occur at 00:01 on Saturday morning)
Areas moving from Tier 2 to Tier 3
-
- Bedfordshire
- Buckinghamshire
- Berkshire
- Peterborough
- the whole of Hertfordshire
- Surrey – with the exception of Waverley
- Hastings and Rother, on the Kent border of East Sussex
- Portsmouth, Gosport and Havant in Hampshir
Areas moving from Tier 3 to Tier 2
-
- Bristol
- North Somerset
Areas moving from Tier 2 to Tier 1
-
- Herefordshire
Here’s a link to the full list of areas by tier level
https://www.gov.uk/guidance/full-list-of-local-restriction-tiers-by-area
CJRS Figures Show Impact on Tourism and Hospitality
HMRC has published new data on the uptake of the CJRS and show that the tourism and hospitality sector has borne the brunt of the impact from Coronavirus. The figures show that:
-
- There were 2.4m people in the UK on furlough (8% of total employment)
- 1 in 4 people on furlough were in the accommodation and food services sector (27% of the sector)
- 1 in 15 people on furlough were in the Arts, Entertainment and Recreation sector (24% of the total)
- Taking Accommodation and Food, and Arts and Recreation as proxies for the tourism industry, almost 1 in 3 people furloughed are in Tourism and Hospitality
It is also worth noting that these figures predate the second national lockdown and the subsequent increase in tier 3 areas where businesses required to close are predominantly in the tourism and hospitality sector
