Trade body urges chancellor to avoid ‘difficult' tax rises

A coalition of industry groups has made a plea for the chancellor to avoid “difficult” tax rises.

 

The call came by the UK Outbound Travel Group in response to Rachel Reeves’ pre-Budget speech.

 

The chancellor refused to rule out tax rises in the Budget on November 26.

 

But Advantage Travel Partnership chief executive Julia Lo Bue-Said urged Reeves “to ensure that the November Budget does not further restrict our members’ ability to grow by yet again imposing difficult tax rises”.

 

Advantage is a leading member of the UK Outbound Travel Group, which also includes Abtot, Aito, InteleTravel, TMU Management and Attraction Tickets, representing more than 1,200 small and medium-sized travel businesses.

 

Lo Bue-Said said: "The lead-up to any Budget always creates uncertainty, and the run-up to this November’s Budget is no exception.

 

”Whilst consumers are cutting back on discretionary spending such as takeaways and cinema visits, we know they continue to prioritise travel, saving any disposable income for holidays. This demonstrates the enduring value people place on travel experiences, even in challenging economic times.

 

“Despite this, there are significant challenges facing our industry which limit the extent to which we can help drive growth across the UK. 

 

“With the overall tax burden on course to rise to the highest level for decades, our SME members are feeling the pinch, continually facing the challenge of rising costs which is impacting their ability to invest and thrive.”

 

She added: "UK outbound travel continues to be a crucial growth sector, delivering a positive impact to the UK economy. 

 

“Travel-related spending, including both inbound and outbound, business and leisure travel,  contributes around £84 billion to the UK economy every year. Importantly, the UK outbound travel sector exports people, not economic growth - keeping wealth circulating within our domestic economy.

 

“With the right conditions, we believe our industry will only continue to grow, supporting local economic infrastructure and national economic stability. 

 

“We call on the chancellor to recognise the vital role our sector plays and to provide the breathing space we need to invest, innovate and deliver for the UK economy."