A rise in the national living wage has already been confirmed by the chancellor, but Sunak is not expected to reform business rates despite demands from the retail sector. Air Passenger Duty could be increased on long-haul flights.
Meanwhile, some good news comes with confirmation that the US will accept most vaccine types when it reopens next month, with the White House setting out further details of its plans to open its borders to fully vaccinated travellers.
Here are the key headlines affecting travel on Tuesday 26 October.
‘No plan to change business rates’ in Budget
The Chancellor will again delay plans to overhaul the business rates regime, driving a “nail in the coffin” on the high street. The government will push back an announcement for reform a second time. The commercial property tax has been blamed for high-street woes – retail pays a quarter of rates despite making up just 5% of the economy. (The Daily Mail)
National living wage rate to rise
The UK’s “national living wage” is to go up to £9.50 an hour from next April, meaning a pay increase for millions of low-paid workers. Ministers have accepted the Low Pay Commission’s recommendation for a 6.6% increase from £8.91, which applies to workers aged 23 and over. For those aged 21 to 22, the minimum will increase from £8.36 to £9.18. (The Guardian)
Retail footfall growing, but back to work is stalling
Footfall across UK retail spots is 27.9% higher than last year, when lockdowns forced the closure of most high street shops but remains 14% below levels in 2019. Research by Springboard found “back to the office” footfall was down 4-5% in the last week, blamed on increasing Covid rates. (The Times)
US validates most vaccine types for entry
The US will grant entry to anyone inoculated with one of the seven vaccines authorised by the World Health Organisation when it reopens to travellers on 8 November. This includes the Sinovac and Sinopharm vaccines developed in China, despite the lack of data about their effectiveness against the Delta variant. (Financial Times)
Rising demand causes oil price surge
Oil prices have risen to their highest since October 2014 due to a global spike in demand as the world begins to return to normal. Crude oil has risen around 60% so far this year to $86 a barrel, meaning aviation fuel will also cost more. (The Standard)
Greenhouse gases reach record level despite pandemic
Greenhouse gas levels in the atmosphere rose to a record high despite a drop in emissions due to Covid-19 restrictions, the UN has warned. Concentrations of carbon dioxide and other heat-trapping gases in the atmosphere rose at a faster rate last year than over the previous decade, with the economic slowdown having no discernible impact, the UN’s World Meteorological Organisation said. (The Times)