Abta’s director of public affairs Luke Petherbridge said the new government’s stated priorities of making the UK a sustainable travel leader, economic growth and opportunity for all would have repercussions for the travel industry.
Speaking at the Xeinadin Leaders in Travel Summit on Thursday (17 October), he said: “For the industry there have been some pretty positive outcomes.”
One initiative, the review of business rates, was “very welcome”, said Petherbridge, adding: “That’s really important for high street travel agents in particular that are disadvantaged by the tax system that penalises retail premises.”
Abta is also lobbying for an extension of the 75% business rates relief due to end in April 2025.
Another government initiative was the sustainable aviation fuel mandate and confirmation of a revenue support mechanism to encourage new supplies. Petherbridge said the end of the current parliament would come in 2029, a year before the 10% SAF usage mandate. “It will be important to show we are on the journey to net zero,” he said.
He said the new Skills England body, announced in July, would “act as a catalyst” for reform of apprenticeships in travel.
However, the speculated rises in National Insurance employer contributions and Capital Gains Tax would affect businesses, Petherbridge added.
Air Passenger Duty, he said, would be another issue in the Budget on 30 October: “APD has been going up in line with inflation; I would expect a slightly above inflation increase this year.”
Another downside for the industry was “anaemic” economic growth and the continued squeeze on household living standards.
He added that with such a huge majority of Labour MPs, travel would need to look for ways to influence it. He suggested targeting all-party interest groups and select committees, which he said attracted opposition MPs hoping to embarrass the government and were: “Therefore, a good way to get your voice heard.”
Looking ahead to the US election on 5 November, Petherbridge said a second term of a Trump government was unlikely to affect travel to the US. “It was 5% (of all UK travel) under Obama, it was 5% under Trump,” he said.
