Government's tax U-turn, and plunging pound lures US visitors

In travel, the UK’s inbound industry is benefiting from a surge in US visitors who are taking advantage of the low value of the pound.

Meanwhile, the former boss of failed Caribbean hotel developer Harlequin Group has been jailed for 12 years for running a “Ponzi” scheme.

Elsewhere, Newcastle airport has rejected calls for it to be renamed after Queen Elizabeth II. Here are the headlines the travel industry woke up to on Monday (3 October).

Government announces U-turn on 45p tax rate

Prime minister Liz Truss has withdrawn the government’s plans to axe the 45p tax rate for high earners due to a growing Conservative party revolt led by former ministers Michael Gove and Grant Shapps. The move comes just 24 hours after Truss insisted that she would abolish the 45p rate in a TV interview. Chancellor Kwasi Kwarteng announced the news in a tweet which started: "We get it, and we have listened." (Financial Times)

Plunging pound attracts US visitors

Inbound tour operators have enjoyed their best month for three years after the sharp fall in the value of the pound helped to tempt back US visitors to the UK following the pandemic. (The Guardian)

Fraudster jailed for £200m Caribbean Ponzi scheme

David Ames, the former boss of failed Caribbean hotel developer Harlequin Group, has been jailed for 12 years after luring thousands of people into investing £226 million into a Caribbean holiday home “Ponzi” scheme and then losing their money. (Various)

Newcastle airport rejects Queen tribute renaming proposal

Calls by local councillors to rename Newcastle airport after Queen Elizabeth II as a tribute have been rejected by the airport, which said such a move would not be “feasible”. (BBC News)

Companies to be freed from ‘red tape’

Around 40,000 medium-sized businesses are to be freed from having to comply with some future regulations. The government’s new rules will see the threshold at which businesses are exempt from certain new regulations being raised from companies with under 50 employees to those with up to 500 staff. (The Times)

United Airlines suspending service at New York’s JFK airport

United Airlines is temporarily halting its services at New York’s JFK airport because its schedule is too small to remain competitive. The suspension at JFK will take effect from 29 October, the start of the winter schedule. (CNN)