Accountancy group MHA has urged chancellor Rishi Sunak to "stand shoulder-to-shoulder" with the travel industry when he delivers the autumn budget on 27 October.
Rajeev Shaunak, head of travel and tourism for MHA, said a large proportion of the sector "remains on life support" due to the Covid-19 pandemic.
"The chancellor’s autumn budget statement must offer the UK’s travel sector hope for, not fear of, the future," Shaunak said.
"The industry remains in critical need of support to come through the strife of the Covid-19 pandemic and Rishi Sunak needs to win it over and deliver, especially as additional factors such as growing inflation, increasing national insurance contributions, labour shortages and a potential energy crisis could place even greater strain on businesses."
He also called on the UK government to freeze or reduce taxes on the travel sector, by reverting the current 12.5% VAT hospitality to 5%, as well as lowering or scrapping the expected rises in corporation tax and employers national insurance, which come into effect in April 2023 and April 2022 respectively.
"Doing so would help companies improve their cash flow, retain staff, and boost consumer confidence," he added.
Although describing the move as unlikely, Shaunak said a priority measure should be the reduction or suspension of Air Passenger Duty (APD).
He also called for the extension of business rates relief to increase cash flows and for the central authority to "urgently consider" extending both the apprenticeship scheme and the Kickstart programme to train and bring through the next cohort of travel professionals.
"While demand for travel is slowly improving, the road ahead is fraught with potential perils, including rising inflation, increasing living costs and even the ongoing Brexit uncertainty," Shaunak said.
"At this autumn budget, the chancellor needs to stand shoulder-to-shoulder with the sector, boost consumer confidence and provide the much needed help the industry needs to make a positive contribution to the country’s economic recovery."
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