Travel delivers lukewarm verdict on chancellor Jeremy Hunt's Budget

Chancellor Jeremy Hunt confirmed help for household fuel bills, but none for commercial premises. However, inflation is predicted to plummet in the next few months, helping cut the cost of living generally.

David Child, Thomas Cook brand and PR director, Europe, said: “The continuation of the energy price cap for another three months and the fact that we’re moving into warmer weather will give many families confidence they can afford their summer holiday. They’ve got through the winter used to paying more for food and with higher inflation generally. I think families that can afford to go on holiday will really think they can afford to go.”

Hunt announced more tax breaks for SMEs, allowing them to offset more of the cost of IT and other necessities against payments to HMRC.

“Some of the allowances (to businesses) could be interesting because we are now at the point where we are picking up those things the industry left off for the last three years – so companies will spend it on investments rather than pay tax,” Child predicted.

Help with childcare received a firm welcome. Mark Tanzer, Abta chief executive, said:

“There are also some very welcome measures that will benefit travel workers and businesses. For example, a big challenge for the travel industry’s recovery has been the ability to recruit and retain staff.

"The government’s announcements around childcare and helping people return to work should help both current staff and those who might wish to join the industry."

The inbound industry, meanwhile, had hoped for tax incentives to encourage visitors. 

Joss Croft, UKinbound chief executive, said: "We welcome changes announced by the chancellor on new provisions to help with the cost of childcare and to get the economically inactive back to work in addition to pension reforms – all of these measures should go some way to addressing the significant recruitment challenges that inbound tourism continues to face.
 
“However, I think that the Chancellor has missed some key opportunities to boost the recovery of the inbound tourism industry in the UK, such as the failure to re-introduce VAT-free shopping for international visitors alongside maintaining sky-high levels of air passenger duty which reinforces the UK’s uncompetitive position against our European neighbours. 
 
“We urge the government therefore to review the competitiveness of the UK as a visitor market, from taxation and visas to international marketing - and come back with a package of measures that will allow tourism to play its vital role in our economy throughout the UK.”

Abta also criticised the absence of changes to APD.

Tanzer said: "Not only is this bad news for travellers, as they have to bear the cost of this rise through their air ticket, but also UK competitiveness. The UK already has amongst the highest APD in the world and increasing this further contradicts with the message that we want to grow the economy.”

Transport and travel union TSSA said the Budget "leaves a gaping black hole on transport policy, just days after sneaking out delays to High Speed 2”.  

The TSSA said Hunt “had nothing to say on transport policy beyond pothole repairs”.