The travel industry has responded to the autumn budget announcement which they say will make the business climate ‘more difficult’ for travel companies.
The Labour government’s first Budget for 14 years will see employers’ national insurance burden rise, while the minimum wage will increase by nearly 6% to £12.10.
Rachel Reeve’s first Budget ‘will make life more difficult for travel businesses’ said Mark Tanzer, Chief Executive of ABTA.
“Notably, whilst it is welcome that rates relief is extended for a further year, the reality is the 40% rate will represent a significant hike in bills for many high-street agents.”
APD also goes up.
“Meanwhile, for our customers, further increases in APD will be disappointing. While a £2 increase might not sound much, it brings UK air tax on economy flights to £15 per person, per flight,” Tanzer added.
“The UK already charges the highest rate of APD in Europe.”
“However, there are some bright spots for the long-term. We welcome recognition that high street businesses are vital, with the announcement of a permanently lower rate of business rates from April 2026.”
The inbound tourism sector also gave its response.
Joss Croft OBE, CEO, UKinbound said “We welcome the increase in employment allowance, the freeze on fuel duty and the investment in the regional rail networks, however we are incredibly disappointed to see Air Passenger Duty increase.”
Inbound tourism is an incredibly powerful driver but businesses in this sector are now facing a new tide of challenges.”
We are however committed to developing a strong working relationship with this Government and will continue to make the case for specific policy changes, ” Croft added.
