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'They've not done us any favours': agencies forced to cut cloth ahead of peaks after latest Budget

Economy
Rob Gill
1 December 2025

Agents have hit out at the government’s latest Budget, which they say will further increase their costs and reduce their ability to recruit staff – with one likening it to "causing death by a thousand cuts" to small businesses.

High street agents in Scotland (pictured: Fort William) remain at a disadvantage following the Budget (Credit: iStock / hopsalka)

One agent told TTG customers would book direct with the operator if they decided to pass on higher costs to consumers, creating a challenging business environment for agencies.

While the industry was spared any major changes by way of travel-specific measures in chancellor Rachel Reeves’ budget on Wednesday (26 November), agents are concerned about further rises in minimum wages, as well as the cumulative effect of higher taxes, such as employers’ national insurance, which was increased in the 2024 budget.