← Back to Westminster Hall Debates
[Dr Rupa Huq in the Chair]
10 December 2020
Lead MP
Grahame Morris
Easington
Lab
Responding Minister
Rachel Maclean
Tags
EconomyTaxationTransportCulture, Media & SportLocal Government
Word Count: 11472
Other Contributors: 16
At a Glance
Grahame Morris raised concerns about [dr rupa huq in the chair] in Westminster Hall. A government minister responded.
Key Requests to Government:
The Government should provide specific support to the coach industry, including rate relief and access to loan schemes. The aim is to ensure these businesses survive and can contribute to economic recovery post-COVID-19.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Coach companies are facing significant challenges due to the pandemic, with more than 90% decline in demand and income. The sector is crucial for UK leisure and tourism, directly employing over 42,000 people and contributing £14 million annually. However, they have been excluded from key support measures such as rates relief and business loans, leading to financial difficulties for many operators.
Erith and Thamesmead
Oppong-Asare highlighted the dire situation faced by two family-run coach companies in her constituency—Phoenix Tours and Abbey Travel. With only three months left until they go bankrupt, over 30 people risk losing their jobs. She urged the Minister to address insurance and finance payment issues and called for a plan to support these struggling businesses.
Alan Brown
Lab
Clydebank and Milport
Mr Brown highlighted that the UK Government's current sector funding is insufficient for the coach industry, which relies heavily on tourist-related activities. He cited estimates from the Confederation of Passenger Transport (Scotland) indicating a 90% drop in income for 2020 and significant job losses. While welcoming Scotland's £6 million grant fund for coaches and travel agents, he urged the UK Government to provide additional support. The furlough scheme and business rate relief are welcome, but the Confederation of Passenger Transport estimates that it costs £200 a day for a bus to sit in a yard and £50 a day per coach would be sufficient for companies to survive.
Alex Norris
Lab Co-op
Nottingham North and Kimberley
Coach companies in Nottingham face substantial overheads including fleet insurance, liability insurance, and rent amounting to over £5,000 a month. Despite the industry's integral role in tourism and education transportation, access to Government support packages has been inconsistent due to local authorities deciding on case-by-case basis whether coach operators qualify under leisure and tourism sectors. The speaker urged for formal recognition of coach operators as part of these sectors and advocated for extending finance holidays by another year to prevent repossessions.
Anthony Mangnall
Con
Fylde
The Government must support coach companies that play a crucial role in the tourism, hospitality and leisure sectors. The value of these industries is £106 billion for tourism, £130 billion for hospitality, and £200 billion for leisure. Mangnall called on the Government to extend finance holidays by 12 months, ensure greater access to support packages, provide an aid-to-trade grant, and top up home-to-school payments. Emphasised the economic viability of supporting coach businesses now, arguing it would pay dividends in the future and help sectors that contribute significantly to the Treasury.
Charles Walker
Con
Broxbourne
Golden Boy Coaches, a family business in his constituency, faces significant challenges due to high maintenance and debt levels, coupled with the lack of customers. The coach industry needs more government support as they are vital for school runs and other activities but currently struggle with fixed costs and no income from interstitial trips.
Dave Doogan
SNP
Angus and Perthshire Glens
Coach operators are facing an immediate threat due to a lack of support, especially as they contribute significantly to the Exchequer compared to other transportation sectors. He highlighted that coach companies in his constituency will benefit from £6 million in specific support from the Scottish Government and urged for similar urgent action from the UK Government. Asked for clarity on whether the Government will provide money that supports English coach companies with consequentials for devolved Administrations.
Derek Twigg
Lab
Widnes and Halewood
The coach industry plays a vital role in supporting local communities and the economy, especially in coastal towns. Small businesses feel excluded from government support due to unclear sector classification, leading to potential job losses.
Emma Hardy
Lab
Kingston upon Hull West and Haltemprice
The Government's financial support measures, such as additional funding for school transport and VAT deferral, have not directly helped the coach industry. Only 20% of coach companies have accessed coronavirus business interruption loans due to high-risk perception and inability to provide six-month business plans. Coach companies are telling me there is a high chance their businesses will end before the furlough scheme runs out, even though it has been welcomed. Additionally, only 20% of businesses were able to access the coronavirus business interruption loans, with most coach companies not accessing this fund. The hon. Member highlighted the overhead costs of coach companies, noting that new coaches cost about £250,000 each and urged the Minister to address their financial difficulties.
Greg Smith
Con
Mid Buckinghamshire
Coach businesses such as Masons Coaches and Countrywide Coaches in his constituency are losing significant amounts of money monthly due to the pandemic. He urged recognition of the coach sector's importance within the leisure industry, noting a 90% reduction in operational mileage and an 80% decrease in vehicle hires from April to October 2020 compared to the same period in 2019.
Jim Shannon
DUP
Strangford
In Northern Ireland, the Department of Enterprise, Trade and Investment offers a bespoke package of grants for the bus sector, including £8,000 per bus up to £100,000 total. He asks if this example can be replicated in other regions.
John Howell
Con
Henley
Coach companies in his constituency need clarification on public service vehicles accessibility regulations, as many thought home-to-school services would be exempt. With advance passenger lists identifying disabled passengers, companies are willing to provide suitable coaches but struggle with the compliance burden.
Martin Vickers
Con
Brigg and Immingham
Representing a coastal area, Mr Vickers emphasised the impact of social distancing on coach companies in his constituency. He cited a local company, Radley Coach Tours, which has seen minimal income since reopening due to low passenger numbers. The company fears for its future existence after 29 years. Vickers called for more than just past support measures and urged the Government to outline specific plans to maintain these businesses' viability in the next year or two.
Matt Rodda
Lab
Reading Central
Coach firms, a huge number of which are small family-owned businesses, play a crucial role in local economies and the national transport network. They help thousands of school children travel to school, support educational trips for sports teams, and contribute significantly to tourism and cultural industries with over 23 million people visiting UK attractions annually by coach. The furlough scheme has been the only source of support for many companies until recently, with industry experts estimating that 80% of coach companies were unable to access other business support schemes.
Mike Hill
Con
Aldershot
Independent travel agencies like Regent Travel in Hartlepool are facing severe financial difficulties due to the pandemic. The coach industry employs 42,000 people and supports thousands more jobs across various sectors.
Paul Maynard
Con
Blackpool North and Cleveleys
Coach drivers from Blackpool, a major hub for the coach industry, faced significant challenges this year due to the inability to host traditional events like the Coach Driver of the Year Awards. The local economy, heavily reliant on coach tourism, saw hotels experiencing an 80% decline in bookings even before stricter lockdown measures were implemented. With social distancing rules making operations unprofitable and key seasons such as illuminations missed, there is a critical need for Government support to prevent further economic collapse.
Philip Hollobone
Con
Kettering
Small businesses in the coach industry are struggling with a 90% drop in income due to the pandemic, leading some operators to face bankruptcy. The industry has invested heavily in infrastructure and regulatory compliance, but still faces significant challenges without government support.
Government Response
Rachel Maclean
Government Response
I congratulate the hon. Member for Easington (Grahame Morris) on securing this vital debate and thank all hon. Members who have spoken. I acknowledge the strength of feeling from MPs across constituencies regarding the impact of the pandemic on coach operators, highlighting the critical role these businesses play in communities. The minister assures that the Government is committed to supporting the future of the coach industry through various measures such as job retention schemes and business support grants. She mentions specific support provided by the coronavirus bounce back loan scheme and extended guidance for local authorities to administer business rate relief. Emphasizing the importance of reopening businesses, she notes the positive news about vaccines indicating a potential end to restrictions. The minister also highlights additional funding of over £70 million for school and college transport capacity in autumn and an additional £27 million allocated for spring term to combat reduced demand on existing public transport. She reiterates the Government's commitment to working closely with the coach sector, including discussions with the Confederation of Passenger Transport (CPT) to understand challenges and provide necessary support.
▸
Assessment & feedback
Summary accuracy
About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.