Leading business travel groups have warned the UK government not to increase the costs of corporate travel through new tax-raising measures.
The UK government will hold its annual budget on Wednesday (26 November), with speculation that it could increase Air Passenger Duty (APD) and introduce levies on overnight hotel stays and the use of electric vehicles (EVs).
The Global Business Travel Association (GBTA), Institute of Travel Management (ITM) and UK-based Business Travel Association (BTA) have warned in a joint statement that these measures “risk undermining growth at the very moment the UK economy needs it most”.
Clive Wratten, CEO of the BTA, said: “Each of these measures, in isolation, adds friction to the UK’s economy. Taken together, they risk sending a signal that travelling for work, which is a key driver of national productivity, is being discouraged rather than supported.
“An overnight visitor levy may appear modest, but for regional cities competing for conferences, investment and talent, it becomes a direct deterrent. Overnight levies will hit those very areas the government is seeking to level up, penalising travellers whose visits fuel local economies.
“Another increase in APD - already one of the world’s highest and most complicated aviation taxes - risks eroding the UK’s competitiveness as a place to do business. APD is not simply a passenger charge, it is a tax on global connectivity that directly penalises UK PLC for engaging in international trade.”
Wratten added that imposing a “pay-per-mile” charge on EVs would send “mixed messages about the UK’s commitment to greener corporate travel”.
“If the government wants to shift travellers toward low-carbon alternatives, then rapid railway reform, reliable services and modern ticketing must come first,” he argued.
The three business travel groups have also “reaffirmed their commitment to working collaboratively” with the UK government on policies that help to grow the economy “without inhibiting business travel”.
“Business travel isn’t a luxury; it’s how the UK wins investment, delivers services and keeps supply chains running. We require a travel system that is affordable, reliable and competitive globally,” added Wratten.