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ABTA publishes blog post on upcoming budget

ABTA published a blog post by CEO Mark Tanzer, addressing members on what the association asked the government to do ahead of next week’s budget.

On Wednesday next week, the Chancellor will present his plans to help the UK economy recover from the Covid crisis. ABTA wrote to him last month describing the support needed to get the travel industry back on its feet.

Tanzer wrote:

“In our brief, we asked the Chancellor to use next week’s budget to:

  • Provide an update on the additional £ 1.5bn to provide targeted support to businesses that have not been able to benefit from relief from existing trade tariffs. This was originally announced on March 25, 2021, but support has yet to be made available.
  • Urge local authorities to prioritize travel companies for financial support as part of the funding for the Additional Restriction Grant – with £ 300million unspent, boards must ensure that travel agents and tour operators get this much needed funding
  • Provide tailored financial support to the travel industry in the form of specific recovery grants for travel agents, tour operators and other businesses dependent on international travel.

ABTA also stressed the importance of an appropriate fiscal framework for the recovery of the industry.

“Several of our members have raised concerns about plans to raise corporate taxes to 25% from 2023, especially with the industry on a much slower recovery path,” Tanzer wrote. . “ABTA has also supported broader calls for reform of the current corporate tariff system. “

The blog also highlighted the role of ODA in the industry’s recovery.

“Over the past year and a half we have seen VAT reductions benefiting the domestic tourism industry, but these reductions have no impact on businesses selling package holidays or on the travel industry. foreigner, ”Tanzer wrote.

“ODA is the only comparable measure available to the public treasury. ABTA supports a short-term reduction in this tax to stimulate recovery, but also continues to stress the need for fundamental reform to achieve a more environmentally efficient regime.

Finally, he mentioned the upcoming COP26 climate conference in Glasgow.

“We recognize the importance of governments around the world working together to reduce carbon emissions,” Tanzer wrote.

“As a member of Sustainable Aviation, ABTA calls on the UK government to work in partnership with industry, through the Jet Zero Council, to provide the policy framework, including airspace modernization and investment in sustainable aviation fuels, which will be needed to meet the government’s carbon reduction target.


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