The association said the scheme, which will be reviewed in three months, would help take pressure off businesses dealing with rising energy bills but urged the chancellor to provide further support through Friday’s mini-Budget.

Abta chief executive Mark Tanzer said: “When carrying out its three-month review, government must take into account the impact of the Covid-19 pandemic when considering sectors for further support, and that businesses have been dealing with rising costs for many months now.
 
“Travel only reopened in March 2022, so the sector’s recovery is furthest behind any other industry. 

“Many businesses took on debt to get through the pandemic, which is now falling due for repayment. These are government-backed loans, so it is in the government’s – and ultimately the taxpayer’s – interest to ensure travel businesses are helped and eligible for the full support.”

New chancellor Kwasi Kwarteng will give his mini-Budget on Friday. Abta called for the extension of business rates support beyond the current financial year and for “more headroom” with the repayment of loans taken on during the pandemic.