Will the chancellor's Autumn Statement help the travel industry?

She stressed that while the UK’s outbound travel sector “is one of the most competitive in the world”, with companies “striving to deliver the best value… to ensure consumers get to enjoy their much-treasured holidays” as the demand for travel remained high, “many families are already having to weigh up how to make ends meet”.

Aito’s executive director Martyn Sumners said the association believes Hunt’s plan will lead to “a reduction in the public’s propensity to spend their money on holidays”.

“Halving the capital gains tax allowance, and the increase in – and freezing of – many other tax allowance levels, some until after the next election, and up to even 2028, coupled with extreme inflation, will lead to a reduction in Middle England’s spending power,” he predicted.

“No doubt the small print will bring other surprises to light. Revenge travel post-pandemic may counter this to some extent [but] time will tell.”

HOW WILL BUSINESSES BE AFFECTED?

During his statement, Hunt promised the government would provide a package of almost of £14 billion worth in business rates support over the next five years, pledging £13.6 billion in tax cuts and confirming a revaluation of rateable values would ago ahead from April 2023.

He said bills paid by businesses “should accurately reflect their market value” and promised two-thirds “won’t pay a penny next year”, as well as ensuring a government-funded “transitional relief scheme” would be launched aiming to benefit around 700,000 businesses.

“We’re pleased the government has responded to our calls to extend the business rates support for retailers. This is something we have been consistently raising with government for months, and it is welcome that they have chosen to act on our recommendation,” said Abta chief Mark Tanzer following the announcement, adding the relief would provide “much-needed breathing space” for retail travel agents.

But Tanzer and others expressed worry over next year’s rates revaluation.

Lo Bue-Said said the business rates reform “lacks detail” and warned the increase in national living wage and energy costs will “all have a direct impact to business costs at such a challenging time”, while Bowen said: "Worryingly, the implication [around the rates revaluation] is that over the medium term, business rates will rise."

Assessing what today’s changes could mean for travel staff’s own pockets, Bowen said: “With that rise in the national living wage to £10.42 next April, two million people will see a rise in wages; hopefully there aren’t too many in the travel industry still at that level but I suspect some small businesses may be paying only slightly above the minimum rate now and may need to review their costs going forward.”

Aito’s Sumners said the statement was “a key watershed budget” for the industry and businesses across the UK. 

“Our future as small- and medium-sized businesses – and as citizens of the UK in our personal lives too – depends on the government recognising it needs to restore confidence for both the public and businesses, and to decide to take brave and bold moves to put the economy in a much better place.”

Sumners backed the increase in the national living wage to support those on modest incomes, but cautioned the rise “will hit SMEs hard”, especially travel firms whose finances were already stretched after being unable to realistically use the furlough system during the pandemic.