Coach operators are among organisations that must be considered eligible for the Coronavirus Business Rates Relief Scheme (CBRRS) in England, according to a letter sent to Chancellor Rishi Sunak by a group of trade bodies and the Local Government Association (LGA).
LGA had initially advised its members that coach operators were part of the leisure sector and were thus captured by CBRRS. However, later guidance from the Ministry of Housing, Communities and Local Government (MHCLG) excluded them from the scheme. The letter calls on Mr Sunak to reverse that decision urgently.
Qualifying for CBRRS would mean that coach operators in England would receive business rates relief and pay nothing for 12 months. Those with a rateable value of below £51,000 would also receive a cash grant.
MHCLG stance ‘contradicts Sunak’s earlier statement’
Mr Sunak has previously said that every business in the leisure sector is eligible for CBRRS. In its guidance, MHCLG stated that coach operators do not qualify because they are not in premises that customers enter to make a purchase. That has been questioned by some that have booking offices.
The letter sent to Mr Sunak argues that such a policy from MHCLG contradicts his earlier statement, adding that its point about premises is an arbitrary one.
As an example of the inconsistency of MHCLG’s approach, the letter further points out that a car hire business is eligible for CBRRS support, but a coach hire operation is not.
Confederation of Passenger Transport Chief Executive Graham Vidler is among the letter’s signatories. He says the government’s failure to accept that coach operators are part of the leisure sector is “deeply disappointing.” Mr Vidler adds that the approach “suggests a worrying lack of understanding” from Westminster about coaches.
The industry now faces an “18-month winter” thanks to 2020’s summer season having been wiped out. Mr Vidler adds that CBRRS funding would provide the backing that is needed for operators to survive the coronavirus COVID-19 pandemic and enable them to gear up quickly when appropriate.
‘Hard to understand’ why coach operators not eligible
Essex operator Kirbys Coaches has carried 21,679 customers on 643 excursions and holidays in the past 12 months. It also conveyed 152 groups of foreign visitors and undertook 250 excursion and holiday experiences for social and school groups over the same period. That was all delivered with 25 employees.
Director Simon Kirby says that it is “hard to understand” why coach operators are not considered to be part of the leisure sector. He adds that Kirbys’ future business is in jeopardy if the industry is not given help to survive.
