The cost of corporate travel in the UK is expected to increase following the government’s Autumn Budget announcement on Wednesday (26 November).
Following much speculation – and a few leaks – Chancellor Rachel Reeves’ budget confirmed the UK’s Air Passenger Duty (APD) would increase from April 2027 “in line with retail price inflation”. According to the UK’s Office for National Statistics, the Consumer Prices Index rose by 3.6 per cent in the 12 months to October 2025.
The rate hike follows the previously announced increase in APD which is expected to take effect from 1 April 2026.
Meanwhile, a 50 per cent increase in APD for the use of private jets (also announced in the previous Budget) will be extended to cover a broader scope.
“Many private jet journeys do not meet the criteria for the higher rate and subsequently pay the same APD rates as commercial airline passengers,” according to the Budget document. “Therefore, following a consultation, the government will extend the scope of the higher rate of APD to cover all private jets above 5.7 tonnes from April 2027.
“Extending the scope of the higher rate ensures the tax is applied consistently and that those who can afford to fly privately make a fair contribution alongside commercial air passengers.”
The government also announced it would give mayors in England the power to raise a visitor levy on overnight accommodation and is currently “consulting on the design of the levy”.
Additionally, a new Electric Vehicle Excise Duty (eVED) will be introduced from April 2028, which drivers of electric and plug-in hybrid cars will be required to pay on a per-mile basis alongside their existing Vehicle Excise Duty.
The government is currently inviting feedback on the implementation of the new eVED, with the consultation period open until 18 March 2026.
A further £100 million in funding was also announced for EV charging infrastructure, including support for the installation charging points “where people live and work”.
Responding to the Budget announcement, Business Travel Association (BTA) CEO Clive Wratten said the new taxes “risk undermining growth at the very moment the UK economy needs it most”.
“Mayors being given the power to introduce an overnight visitor levy has been positioned as a tool for local investment, but this will directly increase the cost of travelling for work in the very regions the government is seeking to level up,” he said.
“For cities competing for conferences, investment and skilled workers, an overnight levy risks acting as a deterrent - penalising the engineers, consultants, clinicians and project teams whose visits fuel local economies.”
Wratten also criticised the APD increase, labelling it “a tax on global connectivity”.
“These new taxes will add friction to the UK’s economy from 2028. It ultimately sends a signal that travelling for work, which is a key driver of national productivity, is being discouraged rather than supported – with a predicted additional £255 charged per year,” he said.
Paul Spencer, managing director of UK-based TMC consortium Focus Travel Partnership also raised concerns, stating the taxation changes will impact TMC owners and entrepreneurs “both in terms of incentives as well as their general tax burden”.
Blacklane’s general manager of the UK and Ireland, James Dow, said the government’s eVED proposal “risks undermining efforts to drive greater EV adoption, potentially slowing the shift towards greener choices”.
“Blacklane is engaged in conversations with our chauffeur partners to fully understand the impact of these changes, and to develop meaningful incentives to ensure EVs are an attractive option to professional chauffeurs. Despite operating environment challenges, we remain committed to EVs remaining the dominant vehicle type on our platform throughout the UK,” Dow said.