Speculation and leaks about Rishi Sunak’s Budget, due today, dominate the morning press, with one title warning VAT and business rates relief will not be extended beyond April, which would come as a blow to travel firms.

Meanwhile, the government is reportedly set to put off a decision on further Covid restrictions until after half-term, while new figures highlighting the massive sustainability challenge faced by aviation are laid bare.

Here are the key headlines concerning travel on Wednesday 27 October.

New rival to Eurostar emerges

Spanish rail operator Renfe is seeking to operate a new service between Paris and London. The company is expected to take advantage of the slots in the Channel Tunnel, capitalising on the high passenger demand for the route. (City AM)

Airlines face sustainability long-haul

The scale of the sustainability challenge to airlines has become apparent in the run-up to next week’s UN Climate Summit in Glasgow. Iata estimates about 450 billion litres a year of sustainable aviation fuel (SAF) will be needed in 2050, or about two-thirds of total fuel consumption. Current annual SAF production is only 100 million litres, Iata estimates. (Financial Times)

Chancellor to give ‘optimistic’ view in statement today

Rishi Sunak will give an upbeat outlook on the economy in today’s Autumn Statement. The country’s sharp rebound from last winter’s lockdown means the economy is predicted to grow by about 7% this year, the chancellor is expected to say. This is nearly twice as much as the 4% predicted by the Office for Budget Responsibility in its March forecast. (The Times)

Warning over VAT hike for hospitality and businesses

Hotels, pubs, restaurants and nightclubs face an £8 billion “cliff edge”, Rishi Sunak has been warned ahead of today’s Budget, which is due to wind up the last remaining elements of Covid-19 support. The Chancellor is likely to reinstate hospitality VAT to 20% from 12.5% next April, together with removing the 34% discount on business rates. (The i)

Govt puts off decision on more Covid restrictions

Ministers will not make a decision on Covid-19 restrictions for two weeks until the impact of half-term on infections can be seen. Measures under consideration include restricting household mixing indoors this winter, as data modelling suggests working from home and mandatory mask wearing might not be enough to avoid an increase in hospital admissions. (The Independent)