By Juliet Dennis and Andrew McQuarrie
Industry leaders appear split on the impact of the Budget, with some predicting pressure on staffing and others vowing to protect jobs at all costs.
Firms are reviewing costs following the announcement of a rise in employers’ national insurance contributions from April 2025 and a 6.7% increase in the national living wage. However, the impact could be tempered by how consumers react and whether demand remains strong next year.
Scottish Passenger Agents’ Association president Jacqueline Dobson said she expects travel firms to assess staffing levels but still forecast a strong 2025 for members.
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“It was a hard Budget for employers – there’s no doubt about it,” she said, adding the increasing wage costs would “definitely have an impact” on Scottish firms.
Dobson, who is also Barrhead’s president, predicted: “Some businesses will have to look at headcount, and productivity will have to increase as well.”
Abta chief executive Mark Tanzer warned the Budget would “make life more difficult for travel businesses” and highlighted the weighty rise in employment costs, expected to run into tens of thousands for miniples.
Idle Travel director Tony Mann said the change would “easily cost £15,000” for his one branch.
He criticised the scale of the rises, adding: “It’s frustrating because of how it limits growth.”
Despite widespread disappointment across the sector, many firms vowed to protect jobs and remained upbeat about future plans.
Polka Dot director Mark Johnson said: “It will add a huge amount of costs for SMEs; it is a short-sighted Budget, [but] we will deal with whatever is thrown at us.
“We will continue to look after our people because they are the most important part of our business.”
Travel Village Group chief executive Phil Nuttall also pledged to look after staff, saying: “We protected jobs through Covid and we need to maintain this philosophy.”
Businesses would have to factor in the extra costs in future plans, he said, adding: “We need to increase our enquiries-to-conversion percentage.”
Premier Travel said it would continue to grow its team “as long as we continue to see sales growth”.
Managing director Paul Waters said: “We will continue to recognise the importance of our people. Our plans for future recruiting and staffing will remain the same.”
Nicola Park, owner of Seaside Travel, said the Budget would not stop the 10-branch agency expanding. “Nothing is ever easy; every year costs go up. It won’t stop me opening more shops,” she said.
The Travel Network Group chief executive Gary Lewis called the Budget a “balance of wins and losses” bringing “challenges and opportunities” for members.
“The key right now is for our members to understand exactly the impact on their business and start planning accordingly,” he said.
C&M Travel Recruitment managing director Barbara Kolosinska welcomed the potential for the national living wage rise to push up other industry salaries.
“Some roles are on the minimum wage; it makes it hard to attract staff, so it’s good that has gone up.”
But she noted: “It may have a slight impact on recruitment spend.”