Industry figures hope the appointment of Rishi Sunak as prime minister heralds a return of political and economic stability following the recent turmoil.
Sunak warned of “a profound economic crisis” but pledged to “fix the mistakes” of his predecessor as he became the third prime minister in seven weeks after Liz Truss resigned last Thursday.
The Advantage Travel Partnership chief executive Julia Lo Bue-Said hailed the news as “positive”, saying: “We have an opportunity to get stability back.”
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But Alan Bowen, advisor to the Association of Atol Companies, noted: “Financially, we’re in the same mess we were. The cost of living is out of control.”
The government delayed plans to issue a ‘fiscal statement’ next week aimed at plugging a £40 billion hole in its finances until November 17 so it is based on the “most accurate” economic forecasts, with the Bank of England due to raise interest rates again on November 3.
Bowen warned that the budget “won’t be travel-friendly and we’ll all be poorer. Those with mortgages will be paying a lot more. We were told we’d get a two-year cap on energy bills, now it’s six months. I’m not sure people are going to commit to book holidays in January when they don’t know what their energy bills will be from April.
“The bottom end of the market next year is going to be tough. People will want to travel, but it will depend on the pound in their pocket.”
Althams Travel managing director Sandra McAllister welcomed the appointment of her local MP as PM saying she had met Sunak “a few times”. She said: “It’s shameful how the government has been behaving playing with peoples’ livelihoods. If he can calm the frenzy in the financial world, it will have a positive effect.”
Miles Morgan Travel owner Miles Morgan said: “Boring and predictable in politics works well for the travel industry. Sunak was probably the best option for the sector.”
Spear Travels group managing director Peter Cookson agreed, saying Sunak “had to be the best option” and credited the furlough scheme for helping businesses survive Covid, saying: “Without Rishi, we wouldn’t be in business now.”
Boring and predictable in politics works well for the travel industry
Premier Travel managing director Paul Waters added: “We can start to move on. Early reactions look promising.”
A leading airline source said: “Things can only be more stable. Engagement hadn’t really got under way [with the Truss government] because of all the distraction so changes to ministers probably won’t make a difference. [But] will they tear up ideas or proceed the same way?
“People are frustrated. None of this has been helpful and there has been a cost to the country and to individuals.”
Abta urged Sunak to prioritise “economic stability and cost-of-living support”. Chief executive Mark Tanzer said: “We need the government to understand the delicate position the travel industry is in and the support needed.”
Helen Dickinson, chief executive of the British Retail Consortium, noted: “Sunak takes office during one of the most challenging economic periods consumers have known.” She warned retailers are threatened by an “£800 million bombshell of additional business rates in April” and called for a freeze on rates and reform of “the broken transitional relief system”.
More: Comment: Let’s hope Sunak can bring some stability
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