Multiple calls for the Omicron Hospitality and Leisure Grant (OHLG) in England to capture the coach sector have been made as the scale of work losses due to a drop in passenger confidence becomes clear.
Longstanding industry ally Emma Hardy MP and RHA Executive Director – Policy and Public Affairs Rod McKenzie have each written to ministers asking for that change to be made. Coach operators are currently ineligible for OHLG as one of its criteria is that a business’s main service and activity must take place in fixed rate-paying premises.
That stipulation should change urgently, Mr McKenzie says. Mrs Hardy has urged Secretary of State for Transport Grant Shapps to “make support available for those [coach operators] that need it.” Mr McKenzie has additionally called on Secretary of State for Business, Energy and Industrial Strategy Kwasi Kwarteng to remove what he calls “inequality” between England and the devolved nations in the degree of assistance offered to coaching.
Backing that up, in her letter of 24 January Mrs Hardy highlights the recent decision by the Scottish Government to make available a £6,800 ‘tourism top-up’ payment to coach operators that have previous been supported. Mr McKenzie notes that coach businesses in Wales have been able to access support from the Welsh Government’s Economic Resilience Fund. The Northern Ireland Executive has also made money available, with more likely.
Coach industry representatives that have briefed Mrs Hardy say that their members have experienced cancellation rates of 40% or more during the pre-Christmas 2021 period and around 25% for Q1 of this year.
“The devolved nations recognised the important role of coach transport from the outset and supported it accordingly. I am deeply disappointed [that] the government has not done the same for those in England,” she concludes. Mrs Hardy drew acclaim from the coach industry during the earlier days of the pandemic when she repeatedly called on ministers to step in and help.
Meanwhile, Mr McKenzie in his letter says that while the relaxation of travel restrictions is welcome, the knock to consumer confidence brought about by the Omicron variant has cost RHA coach operator members millions of pounds of revenue through a reduction in private hire and tour bookings and an inability to leverage Christmas markets held in continental Europe.
He adds that operators’ premises being “mobile” should not count them out of OHLG. Furthermore, the Additional Restrictions Grant – which like OHLG is administered by local authorities – is a “postcode lottery” that has brought the coach sector varying degrees of success. The industry has also been excluded from other grant streams, he adds.
“This, combined with the accumulation of debt from previous lockdown periods and increased cost pressures with inflation and rising fuel costs, is an escalating problem for coach operators, the majority of which are small businesses… on low margins.”
