The travel industry has responded to the fall budget announcement which it says will make the business climate “more difficult” for travel agencies.
The Labor government's first budget for 14 years will see the national insurance burden on employers increase, while the minimum wage will rise by almost 6% to £12.10.
Rachel Reeve's first budget will 'make life harder for travel businesses', says Mark Tanzer, chief executive of ABTA.
“In particular, while it is welcome that rates relief is being extended for another year, the reality is that the 40% rate will represent a significant increase in bills for many street officers.”
ODA is also increasing.
“In the meantime, for our clients, further increases in ODA will be disappointing. Although a £2 increase doesn't sound like much, it brings the UK air tax on economy flights to £15 per person per flight,” added Tanzer.
“The UK already has the highest ODA rate in Europe. »
“However, there are some long-term positives. We welcome the recognition that high street businesses are essential, with the announcement of a permanently lower business rates rate from April 2026.”
The inbound tourism sector also gave its response.
Joss Croft OBE, CEO, United Kingdom incoming said: “We welcome the increase in employment benefits, the freeze on fuel taxes and investment in regional rail networks, but we are incredibly disappointed to see the increase in taxes on air passengers. »
Inbound tourism is an incredibly powerful driver, but businesses in this sector are now facing a new wave of challenges.
We are, however, committed to developing a strong working relationship with this government and will continue to advocate for specific policy changes,” Croft added.
