The Budget – the need for growth remains urgent
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dhewitt@abta.co.uk Thu, 11/27/2025 - 10:14
Yesterday the Chancellor Rachel Reeves delivered her much anticipated budget to the nation.
Some of the measures she announced, such as more support for high street businesses through a permanently lower level of business rates and enhanced access to apprenticeships for SMEs, will be welcome for many members.
But the impact of other measures on consumer confidence and demand, such as the introduction of a wide range of new taxes and tax increases, largely targeted at middle- and higher-income earners, remains to be seen.
The travel industry has been one of the main drivers of growth for the UK economy over recent years and any negative impact on consumer demand for holidays would directly contradict the Chancellor’s own growth agenda.
Similarly, the power for mayors in England to introduce local levies on overnight stays announced on Tuesday will worsen the UK’s existing competitiveness challenge when it comes to the price of our domestic tourism. ABTA and partners will be engaging with the consultation to make this point but will also engage on the design principles necessary to make any such taxes workable – including the use of flat rates, and reinvestment of revenues to improve the services used by tourists.
There is a great deal to unpack in the Budget, but ABTA’s Public Affairs team has done precisely that and their analysis can be accessed here exclusively for ABTA members.
Mark Tanzer, Chief Executive
Continue reading...
Full Page image
dhewitt@abta.co.uk Thu, 11/27/2025 - 10:14
Yesterday the Chancellor Rachel Reeves delivered her much anticipated budget to the nation.
Some of the measures she announced, such as more support for high street businesses through a permanently lower level of business rates and enhanced access to apprenticeships for SMEs, will be welcome for many members.
But the impact of other measures on consumer confidence and demand, such as the introduction of a wide range of new taxes and tax increases, largely targeted at middle- and higher-income earners, remains to be seen.
The travel industry has been one of the main drivers of growth for the UK economy over recent years and any negative impact on consumer demand for holidays would directly contradict the Chancellor’s own growth agenda.
Similarly, the power for mayors in England to introduce local levies on overnight stays announced on Tuesday will worsen the UK’s existing competitiveness challenge when it comes to the price of our domestic tourism. ABTA and partners will be engaging with the consultation to make this point but will also engage on the design principles necessary to make any such taxes workable – including the use of flat rates, and reinvestment of revenues to improve the services used by tourists.
There is a great deal to unpack in the Budget, but ABTA’s Public Affairs team has done precisely that and their analysis can be accessed here exclusively for ABTA members.
Mark Tanzer, Chief Executive
Continue reading...
