After the Competition and Markets Authority (CMA) announced that it would be focusing on the holiday accommodation sector as part of an investigation into cancellations and refunds, Vacation Rentals voluntarily changed its policy after originally failing to offer refunds to all customers whose trips were cancelled. It has now given the CMA a formal commitment that customers will have the option of a full refund if a booking has been cancelled because of restrictions associated with the coronavirus outbreak.

Vacation Rentals, which operates popular accommodation sites including Hoseasons and Cottages.com, is one of a number of companies that have been reported to the CMA’s COVID-19 Taskforce, set up to monitor market developments and identify the big problems facing consumers as a result of the pandemic and the lockdown.

Other holiday lets firms, however, have not yet agreed to do the same as Vacation Rentals, and the CMA’s investigation is continuing. Common complaints include companies refusing to provide full refunds at all or offering only vouchers instead of cash refunds. The CMA will continue with its inquiries into the holiday accommodation sector, which may ultimately lead to court action against companies which fail to comply.

The CMA’s COVID-19 Taskforce has so far received around 4,500 reports about UK holiday rental companies, with complaints about Vacation Rentals making up a significant proportion of those reports.

Last month, the CMA issued a statement to help consumers understand their rights and to help businesses treat customers fairly. In light of this, and contact from the CMA, Vacation Rentals has committed to:

• offer a full refund to customers who booked holiday homes but could not stay in them due to lockdown restrictions
• communicate its new policy clearly on its website and via social media
• provide the CMA with monthly reports on how many refund offers have been made and accepted

Holiday accommodation was named as a sector of particular concern when the CMA launched its investigation into cancellations and refunds, along with weddings and private events and nurseries and childcare providers. It has since expanded the scope of its investigation to also include package travel.

Andrea Coscelli, CEO of the CMA, said:

Our COVID-19 Taskforce is working hard to ensure that consumers get what they are entitled to, so it’s good news that Vacation Rentals has agreed to offer people the refunds they are due. We welcome this step and other holiday lets firms must now follow suit.

We know the pandemic is presenting businesses with challenges too, but it’s not right that people are being left hundreds or even thousands of pounds out of pocket – on top of having to sacrifice their holidays. Consumer protection law exists for a reason; businesses must observe the law or face the possibility of enforcement action.

If people have been affected by unfair cancellation terms in the wake of Covid-19, they can report them to the CMA using the online form.

Whilst the CMA is not able to respond directly to every complaint it receives, the information people provide helps the CMA to decide which issues to address. Updates on holiday accommodation can be found here and all updates on the CMA’s cancellations work can be found on the COVID-19 response page.

Notes to Editors

1. The COVID-19 Taskforce was launched on 20 March to scrutinise market developments, identify harmful sales and pricing practices as they emerge and take enforcement action if there is evidence firms may have breached competition or consumer protection law. For more information please see our guidance.
2. Protecting consumers during the coronavirus (COVID-19) pandemic: update on the work of the CMA’s Taskforce.
3. COVID-19: CMA to investigate cancellation policy concerns
4. Coronavirus (COVID-19): CMA statement on consumer protection law in relation to cancellations and refunds complaints
5. The key pieces of consumer protection legislation relevant to the CMA’s investigation are the Consumer Rights Act 2015 (CRA) and the Consumer Protection from Unfair Trading Regulations 2008 (CPRs). The CRA prohibits the use of unfair terms in contracts between businesses and consumers. The CPRs prohibit unfair commercial practices by businesses towards consumers.
6. Refunds are being offered to Vacation Rentals customers whose bookings were cancelled because it was unlawful for customers to travel or to make use of the accommodation and/or for the accommodation owner to make the holiday accommodation available.
7. For media enquiries, contact the CMA press office on 020 3738 6460 or press@cma.gov.uk.

An extra £37.8 million support package will be available to debt advice providers this year (20-21) so they can continue to provide essential services to help more people who are struggling with their finances due to Coronavirus, minsters have announced.

The Money and Pensions Service (MaPS), will oversee the allocation of the funds, including to charities, for debt advice and other money guidance services.

The support package, which will bring the MaPS budget for debt advice to over £100 million this financial year, will help providers to deliver advice to more people in England who may be experiencing financial problems due to coronavirus. It will also help providers who have seen a fall in their income streams, enabling them to continue their vital work and supporting their staff to deliver these services.

The funding consists of £20.6 million from the government and £14.2 million raised through a one-off increase to the Financial Services Levy. In addition, MaPS will also be contributing a further £3 million from their existing budget.

The Economic Secretary to the Treasury, John Glen said:

We know that some people are struggling with their finances during this difficult time, which is why we want to make sure people can access the help and support they need to manage their debts and get their finances back on track. The joint funding package will help debt advice providers to continue with – and increase – their vital work.

This extra funding comes on top of the unprecedented package we have put in place to support individuals, businesses and the economy through the coronavirus outbreak.

Minister for Pensions and Financial Inclusion, Guy Opperman, said:

The Money and Pension Service was set up to provide free and impartial guidance for those seeking to take control of their finances. During these challenging times, that work is even more important, so it’s vital that we provide additional support for those concerned about their financial wellbeing. This funding package will help ensure that people can obtain the quality guidance and help that they need to help manage their money.

Chief Executive at the Money and Pensions Service, Caroline Siarkiewicz, said:

The impact the Coronavirus pandemic will have on people’s financial wellbeing is significant and will continue for some time. We know there will be increased demand for free, expert debt advice services over the coming months and this extra funding will help to ensure that more people can access help more quickly. Our MaPS services are here to provide support for people when they need it and to help them navigate the tricky months ahead.

The government has put in place an unprecedented package of support to help people with their finances during the Coronavirus pandemic. This including the Job Retention Scheme, which has helped to protect 8.7 million jobs with £17.5 billion claimed so far, and the Self-Employed Income Support Scheme which has seen 2.5 million claims worth £7.2 billion. The government has also made changes to the welfare system including Universal Credit and Statutory Sick Pay, making support quicker and easier to access, as well as more generous. It is also working with the banks and financial regulators to give people payment holidays on their mortgages and a range of consumer credit including credit cards, personal loans, motor finance and payday loans.

The Financial Services Levy provides funding for debt advice through MaPS and this one-off increase to the levy will see finance firms providing an extra £14.2 million in 2020-21. The Financial Conduct Authority (FCA) will consult on the details of this one-off rise in due course.

Delivery of debt advice is a devolved matter, so the additional funding will be matched for the devolved administrations, resulting in an extra combined £5.9 million for Scotland, Wales and Northern Ireland.

Notes

• MaPS will set out the process for allocating funds in the coming weeks at www.maps.org.uk
• MaPS’ existing budget for 20/21 is £140.9 million of which £64.6 million is for debt advice. So the extra funding announced today brings the budget for debt advice up to £102 million this financial year.

The UK and Japanese governments will today (Tuesday 9 June) start negotiating a UK-Japan Free Trade Agreement.

The agreement will build on the existing EU-Japan deal. It will go further by securing additional benefits in areas such as digital trade, and providing support for the UK’s 5.9 million small businesses.

It will allow the UK and Japan to set new standards in areas of digital technology and e-commerce, helping to establish our position as a global technology superpower.

Last year, UK trade with Japan was worth over £30 billion and 9,500 UK based businesses exported goods to the country, helping to employ 2.4 million people across the UK. A bespoke free trade agreement with Japan will help generate significant opportunities throughout the economy, creating jobs, boosting wages and diversifying choice for consumers.

UK-Japan trade talks are also an important step towards our joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a key UK priority, which will help us diversify our trade and grow the economy.

The UK and Japan are committed to an ambitious timeline to secure a deal that will enter into force by the end of 2020. Both countries are also dedicated to leading the global response to the economic challenges posed by coronavirus, making international trade easier and fairer and avoiding a retreat into protectionism.

The International Trade Secretary Liz Truss and the Japanese Minister for Foreign Affairs Motegi Toshimitsu are launching negotiations via video conference call.

On the UK side, talks will be led at official level by Graham Zebedee, with all UK trade negotiations being overseen by Crawford Falconer, DIT’s Chief Trade Negotiation Adviser.

Government analysis shows a UK Japan FTA will benefit every region and nation of the UK, with the greatest benefits in Scotland, London and the East Midlands.

International Trade Secretary Liz Truss said:

Today marks a historic moment in the long-standing friendship between the UK and Japan.

As we kick start trade talks, we aim to strike a comprehensive free trade agreement that goes further than the deal previously agreed with the EU, setting ambitious standards in areas such as digital trade and services. A trade deal with Japan will also advance the UK’s accession to the Comprehensive and Progressive Trans-Pacific Partnership, which will improve market access for UK businesses across the Asia-Pacific region.

This deal will provide more opportunities for businesses and individuals across every region and nation of the UK and help boost our economies following the unprecedented economic challenges posed by coronavirus.

Takaaki Hanaoka, Secretary General of the Japanese Chamber of Commerce & Industry in the UK said:

We, Japanese Chamber of Commerce＆ Industry in the UK welcome the movement of starting negotiation of Free Trade agreement by both UK and Japanese governments.

The UK and Japan have common ground in that both have mature markets and societies. Both can be partners in further developing economic activities through mutual trade and investment. We urge strongly that a legally binding FTA between UK and Japan be agreed at the earliest opportunity.

Negotiations will be conducted remotely, via videoconference, across six working groups and will cover all 23 chapters and annexes of the future agreement. Around 100 negotiators will be involved on the UK side.

A common-sense approach to negotiations will ensure that talks can progress during the COVID-19 pandemic, while public health and social distancing measures can continue to be respected.

Josh Hardie, CBI Deputy Director-General, said:

The launch of the UK-Japan talks is a big step forward to creating an ambitious free trade agreement.

Japan offers huge opportunities for two-way trade and investment, one that will benefit every region and nation across the country.

Business is optimistic that a deal focused on supporting digital trade and industries of the future can be reached.

The government is committed to conducting trade negotiations transparently, and we will provide further information on the progress of the talks as they go on.

The death of George Floyd took place thousands of miles away – in another country, under another jurisdiction – and yet we simply cannot ignore the depth of emotion that has been triggered by that spectacle, of a black man losing his life at the hands of the police.

In this country and around the world his dying words – I can’t breathe – have awakened an anger and a widespread and incontrovertible, undeniable feeling of injustice, a feeling that people from black and minority ethnic groups do face discrimination: in education, in employment, in the application of the criminal law.

And we who lead and who govern simply can’t ignore those feelings because in too many cases, I am afraid, they will be founded on a cold reality.

Yes, I am proud to lead the most ethnically diverse government in the history of this country, with two of the four great offices of state held by a man and a woman of Indian origin; and yes, I am proud of the work I began to lead more than ten years ago to recruit and promote more young black people, in the police and other walks of life.

This country has made huge strides. I remember the 1970s, and the horror of the National Front. I truly believe that we are a much, much less racist society than we were, in many ways far happier and better.

But we must also frankly acknowledge that there is so much more to do – in eradicating prejudice, and creating opportunity, and the government I lead is committed to that effort.

And so I say yes, you are right, we are all right, to say Black Lives Matter; and to all those who have chosen to protest peacefully and who have insisted on social distancing – I say, yes of course I hear you, and I understand.

But I must also say that we are in a time of national trial, when for months this whole country has come together to fight a deadly plague.

After such sacrifice, we cannot now let it get out of control.

It is BAME communities who have been at the forefront of the struggle against coronavirus – whether in health care or transport or social care or any of the other essential services that have kept our country going.

And it is BAME communities, tragically, that have paid a disproportionate price.

So no, I will not support those who flout the rules on social distancing, for the obvious reason that we risk a new infection at a critical time and just as we have made huge progress.

And no, I will not support or indulge those who break the law, or attack the police, or desecrate public monuments.

We have a democracy in this country. If you want to change the urban landscape, you can stand for election, or vote for someone who will.

And so I must say clearly that those who attack public property or the police –who injure the police officers who are trying to keep us all safe – those people will face the full force of the law; not just because of the hurt and damage they are causing, but because of the damage they are doing to the cause they claim to represent.

They are hijacking a peaceful protest and undermining it in the eyes of many who might otherwise be sympathetic.

And as a society, we can and must do better.

This month, on the 22nd of June, we celebrate the arrival of the Empire Windrush in 1948, and we remember the contribution of the Afro-Caribbean workers – in the NHS and across all public services – who helped to rebuild this country after the war.

And today, once again, we face a great task: to relaunch this country after Coronavirus. So let’s work peacefully, lawfully, to defeat racism and discrimination wherever we find it, and let us continue to work together across all the communities of this country, as we put Britain back on its feet.

Councils in England can now access extra advice to help protect public money from fraud during the procurement of goods and services.

Today (8 June 2020), the Ministry of Housing, Communities and Local Government has published the Review into risks of fraud and corruption in local government procurement.

Produced in collaboration with the local government partners and the Prime Minister’s Anti-Corruption Champion John Penrose MP, the Review sets out practical examples and case studies showcasing how councils can strengthen their processes and implement prevention measures.

Councils in England spend around £55 billion a year on goods, work and services. A survey conducted as part of the review showed 23% of respondents reported fraud and/or corruption in the procurement lifecycle during the 2017 to 2018 financial year.

Local Government Minister Simon Clarke MP said: 

Everyone in public life shares a common duty to protect the interest of taxpayers.

Acknowledging and mitigating the risk of fraud and corruption is critical for sound financial management and to ensuring that every pound spent by councils is used to support the communities they serve. This is true especially at a time when councils continue to work hard in the national effort against the coronavirus pandemic.

There is no silver bullet, but I would urge all councils across the country to learn lessons from this report and harness the tools it provides to tackle fraud and corruption.

The Prime Minister’s Anti-Corruption Champion John Penrose MP said:

Fraud and corruption in local government affects every one of us. It is imperative that the money spent on our vital public services gets to those who need it most, yet the COVID-19 pandemic has increased opportunities for criminals to defraud taxpayers everywhere. 

I’m glad to be able to present this report, which succinctly highlights the challenges we face in fighting an enemy we can’t always see, and shows the excellent work our councils are doing up and down the country to protect our public services. It’s an essential and helpful first step, and now we’ve got to get on with implementing its findings.’

Councillor Peter Fleming, Chairman of the Local Government Association’s Improvement and Innovation Board, said:

This timely report highlights good practice by councils and provides helpful recommendations as they strive to ensure that taxpayers’ money is protected from fraud and spent on vital public services.

This is increasingly important during the pandemic and after – none more so than in areas such as PPE and electronics where demand is outstretching supply.

This report complements the LGA’s Counter Fraud Hub and we will aim to adapt and implement its recommendations through our sector-led improvement workstreams.

CIPFA CEO Rob Whiteman said:

Public sector supply chains facilitate services from major infrastructure projects to social care, and everything in between. These supply chains are vulnerable to the risk of fraud, bribery and corruption, which can be exacerbated by states of emergency.

Counter fraud measures must be sufficiently robust to ensure that taxpayers’ money is used as intended and achieves maximum impact. This review will support local authorities to ensure they have the skills and methods in place to continue the fight against fraud even under difficult circumstances.

This report delivers on a commitment by the Ministry of Housing, Communities and Local Government in the UK anti-corruption strategy 2017 to 2022 and is an important part of the wider agenda to strengthen the UK’s response to the risks posed by corruption. 

The Local Government Minister made a written statement in Parliament.

See the full review.