The UK outbound travel sector is urging the government for relief in the upcoming spring Budget, highlighting key areas of concern.
- A coalition of travel associations is pressing for a reduction in business rates, emphasising the heavy tax burden on the sector.
- Financial aid is sought for servicing Covid debts that continue to weigh down on travel business owners.
- The sector underscores the significant challenges faced during the pandemic, where operations continued despite halted revenue streams.
- The impending Budget is seen as a crucial moment for political leadership to recognise and support the vital contributions of the travel industry.
The UK outbound travel sector is making an urgent appeal to the government, seeking crucial financial relief in the forthcoming spring Budget. A consortium of travel associations, including the Advantage Travel Partnership and the Association of Bonded Travel Organisers Trust (Abtot), is advocating for a reduction in business rates. This plea is made against the backdrop of an anticipated historic rise in the overall tax burden, which poses significant challenges for the travel industry.
Central to their requests is the pressing need for financial support to address the servicing of Covid-related debts. During the pandemic, travel businesses faced unprecedented hurdles as their revenue streams were severely disrupted while they continued to operate at capacity to manage customer needs. Many businesses were compelled to utilise their capital reserves and take loans to stay afloat, which now poses a substantial financial strain.
Julia Lo Bue-Said, representing the UK Outbound Travel Group, highlighted the critical nature of the upcoming Budget, stating, “With the impending general election looming, this spring Budget is set to be a significant moment for the incumbent government.” She reiterated the importance of the government recognising the travel sector’s recovery efforts and its substantial role in the UK economy. The sector continues to advocate for support to ensure that small and medium-sized enterprises (SMEs) within the industry can thrive.
The coalition stresses that the travel industry bore the brunt of the pandemic more than any other sector, impacting its ability to recover swiftly and contribute economically. The call for supportive measures is not just about immediate relief but also about empowering the sector to regain its economic footing.
The upcoming Budget presents a pivotal opportunity for the government to demonstrate its commitment to the travel sector’s recovery and future prosperity.
