Louise Haigh, tax hikes and the 'B' word – seven takeaways from Abta Travel Matters

Overseas travel generated nearly £52 billion for the UK economy last year, exceeding pre-Covid levels. The latest statistics were revealed by Abta chief executive Mark Tanzer as he estimated outbound travel now accounts for some £51.6 billion in Gross Value Added (GVA) to the UK economy – the value of goods and services produced by the sector after deducting input costs.

He also revealed some 818,000 people are employed in the industry via the extended supply chain in the UK.

However, Tanzer warned that while the picture was optimistic, Abta members were “by no means out of the woods yet”.

“Many still have balance sheets with a heavy debt load, and the National Insurance and Minimum Wage increases recently announced in the budget will put acute pressure on already thin margins,” Tanzer warned as he cautioned against heavier taxes on travel.

“What we must avoid is a layering of taxes that drives the costs of holidays beyond the reach of our customers.

"We have already had a 14% increase in Air Passenger Duty on short-haul economy flights announced in the recent budget.

“We must resist successive environmental taxes at the UK and EU level that throttle demand and restrict travel’s ability to grow and contribute economically.”

For the aviation minister, who’s constituency includes Manchester airport, the job opportunities presented by travel is an issue close to home.

“I've seen first-hand the opportunities the travel industry delivers,” Mike Kane told delegates. “One of my top priorities is ensuring that aviation and maritime have a diverse and inclusive pipeline of talent.”

He insisted the chancellor’s Budget announcements around apprentices – with wage increases and targeted industry investments – would offer greater flexibility to employers and learners “to meet the needs of the next decade”. 

As ever, the B word – and the myriad ways it continues to harm travel and the UK’s wider economy – was mentioned frequently. The difference now is that there’s a new government in charge, and they seem to have a much warmer attitude to our European neighbours.

“As we tackle the challenges and seize the opportunities ahead, strong relationships with our international partners will be essential,” Kane said. “Government continues to engage with EU as we reset our relationship with the member states and the industry to prepare for the entry and exit system.

“We are working to strengthen security and streamline immigration systems through electronic travel and mobilisation, supporting smoother travel for passengers and smoother operations for businesses.”

Sonia Sodha, chief leader writer and columnist at The Observer, offered an interesting take on the resignation of former transport secretary Louise Haigh, insisting prime minister Keir Starmer had taken too “harsh” a position.

“Unless there's something we don't know that hasn't emerged in the public domain yet around what happened... I think it was extremely harsh to force Louise Haigh to resign. I think it was a minor offence, it sounds like she had very bad legal advice, and it happened in her early 20s. It's a token spent conviction, there's no custodial element to it. It's basically as little as the magistrates could give her.”

Sodha questioned the message it sends to society, pointing out: “If we believe in redemption, are we saying that nobody who's ever had any run-in with the criminal justice system before can ever serve in government? For me, that's too harsh, and it sends a wrong message.”

She said Starmer had clearly felt under pressure, having suggested in the run-up to the election that Labour was a ‘clean-cut party’ and very different to the scandal-hit Conservatives. “But for me, if I was him, loyalty to one of the members of my team who had told me about something would have been more important.”

A protestor from Peta (People for the Ethical Treatment of Animals) took to the stage during a panel discussion featuring Tui UK and Ireland’s head of public affairs Nathan Stower.
 
“Tui, you are one of the last remaining travel providers in the UK still profiting from this cruelty,” shouted the Peta protester, who held up a banner that read: “Orcas matter! Drop marine parks.”
 
“Please do the right thing – stand up for the animals, stand up for the orcas, the whales and the dolphins that are still suffering in captivity right now," the protestor added.

She proceeded to stand on stage with her sign as the panel’s conversation continued, before being removed by security. The subject of the protest was not discussed by panellists.