'Missed opportunity': Travel lukewarm on chancellor's spring Budget

Tim Alderslade, chief executive of Airlines UK, the industry body representing UK-registered carriers, said: "The decision to increase APD goes against the prime minister’s commitment not to discourage flying through taxation and hitting passengers – including families and those travelling for leisure – with stealthy tax rises will only make the UK even less competitive on the global stage, with aviation taxes and airport charges already among the highest in the world.

"The government should instead focus on supporting the industry’s transition to net zero which the US and EU has made billions of pounds of support available for, unlike here in Britain.”

Joss Croft, chief executive of UKinbound, said: "We applaud the cut in national insurance and freezing of fuel and alcohol duty, which will positively impact many that work in the UK’s tourism industry.

"But the absence of a new fiscally positive tax-free shopping scheme is a huge missed opportunity, that would stimulate growth and bring massive and much needed additional export revenue to the UK.

"This is a shame as international tourism is incredibly competitive, and with the right policies this industry can quickly deliver incredible growth for UK plc in the short and long term."

Karen Dee, chief executive of the Airport Operators' Association, said: "While the chancellor’s headline measures like the cut to National Insurance will get the most attention, this Budget was a missed opportunity for aviation. There was some positive news, confirming investment in advanced aerospace, but bad news on Air Passenger Duty and no reinstatement of tax-free shopping."

Dee described the latter as a missed opportunity that would ensure the UK remains at a competitive disadvantage to EU neighbours and invite international travellers to spend their money elsewhere. “Tax-free shopping would benefit the whole country, creating jobs, increasing footfall on local high streets and boosting the economy," said Dee.

On APD, she added: “It is disappointing to see the chancellor increase APD for business travellers, especially when data show this group is still to recover to 2019 levels. “It is difficult to see how this squares with the government’s previous commitment not to increase aviation taxes.

"Business travellers are responsible for increasing foreign investment in the UK, for opening new markets for our goods and services, and creating jobs across the country. We should be encouraging them to come to the UK, making it easier for them to invest here, not putting yet more barriers in their way."

Steve Witt, co-founder of Not Just Travel, said: "Any move that helps put more money in the pocket of the consumer is a good thing. This will help build confidence and create more disposable income.

"Given holidays are always in the top three desirable products and spend, it is likely to help boost the travel industry. Measures that raise consumer confidence and spending are always a positive step for the travel industry."

Matt Finch, UK policy manager of Transport & Environment UK, an environmental pressure group, said: "The aviation sector is massively undertaxed, and this long overdue change, that will come into effect in 2025, is the tax equivalent to rearranging the deck chairs on the Titanic. It's baffling that the chancellor didn't do this years ago.

"But it's still completely unbelievable that airlines don't pay a penny in fuel duty when you and I have to pay every time we fill our car up. Where's the fairness in that?"