ABTA Reacts to Budget: Calls for Support Amidst Tax Concerns

Mark Tanzer, Chief Executive of ABTA – The Travel Association, has commented on the recent budget, highlighting both positive and concerning aspects for the travel industry.

Tanzer acknowledged the potential benefit of the 2p National Insurance cut for consumers but expressed concern over the high total tax take, as tax thresholds remain unchanged. He emphasized the importance of this move in potentially boosting consumer confidence and encouraging travel bookings.

Regarding support for small and medium-sized enterprises (SMEs), Tanzer welcomed the extension of the Covid recovery loan scheme, recognizing the current challenges faced by businesses due to increasing costs. He urged the government to work closely with banks to provide leniency around repayment timelines, facilitating business recovery post-pandemic.

However, Tanzer also voiced apprehension over the increase in Air Passenger Duty (APD) on non-economy-class flights, cautioning against additional taxes on aviation. He stressed that the travel and tourism sector could outpace the rest of the economy in the coming years but emphasized the necessity of the right policy framework for this growth.

Looking ahead to a likely election year, ABTA intends to advocate strongly to both the government and opposition parties about the sector’s significance in wealth creation, economic contribution, employment, and trade.