What the UK Travel Industry Needs from a New Prime Minister

In Brief: Luke Petherbridge, Director of Public Affairs at ABTA, discusses the UK travel industry’s expectations and requirements for the incoming prime minister, focusing on travel regulations, industry support, and potential policy changes.

What the UK Travel Industry Needs from a New Prime Minister – Image Credit ABTA

After the prime minister’s resignation, we’re set for a few interesting weeks in politics as we see whether the favourite, newly elected Makerfield MP Andy Burnham, will become our new prime minister without a challenge.

It’s not for me to cast predications about what the outcome will be.

If Andy Burnham does succeed in securing the top job, he is already familiar with the world of travel.

He engaged with the sector during Covid; I had an online meeting with him where we discussed the challenges facing the sector and the need for support for travel businesses through the discretionary schemes – something ABTA successfully secured on behalf of retail high street members.

As the former Mayor of Greater Manchester, he has close links to hospitality and tourism businesses, and one of the UK’s busiest airports was in his patch.

We know he is supportive of domestic tourism taxes, something the current government is already looking to implement, so it’s unlikely we’ll see any reversal of that approach if he does take power.

Whoever becomes the new prime minister, a cabinet and ministerial shake-up is likely. But the new team will need to move at pace if it wants to be in a good position ready for the return of Parliament in September, party conference season and the Budget, which is normally in the autumn.

So, what do we need from this new government? Well, from a travel perspective, that can be grouped into three things:

1. An environment that promotes and creates economic growth

Independent research commissioned by ABTA forecasts that outbound travel sector can grow 20% by 2030 but we need the right environment to do that.

At the moment, the industry faces serious competitiveness challenges tied to taxation and decarbonisation costs – and the latter must be delivered in a balanced way that keeps flying affordable, ensuring overseas holidays remain accessible to all and not the preserve of the wealthy.

If you are a small to medium-sized travel business with a high street presence, it has not been an easy time.

The removal of business rates support has meant higher costs, along with increased national insurance premiums and minimum wages, it’s been a tricky environment in which to operate.

2. A continued value placed on the role of travel industry

To its credit, the current government has recognised the role the outbound travel industry plays in supporting the UK economy.

As our research – the industry economic data relied on by politicians – shows, outbound travel generates £52bn in Gross Value Added each year and supports more than 818,000 jobs across the country.

We’ve seen that recognition in both messages from the minsters we speak to, including the tourism minister’s comments at ABTA’s Travel Matters, and in some of the policies they’ve pursued to help prepare the sector for the future, including on sustainable aviation fuels and airspace modernisation, albeit with some progress still to be made.

It’s important that this continues and underpins the decisions ministers and their departments make that impact on the travel industry.

3. Policies that help our sector thrive

An immediate priority needs to be looking at the continuation of improved ties with Europe. We’ve seen significant progress under this government in addressing some of travel’s post-Brexit barriers.

We’re hopeful we could soon see a system where young people can more easily work in the EU, and vice-versa, through the proposed youth experience scheme which would be a big boost to outbound and inbound travel businesses.

We’ve been pushing for this for a long time, and it was hoped that the UK-EU summit in July would have cemented that deal. However, this is being postponed until a new prime minister is in post.

We need that reinstated as soon as possible in order to discuss this and other important issues, including an agreement on mutual recognition of professional qualifications, making school and group travel easier, and cooperation on e-visa regimes.

Whatever the outcome of the next few weeks, ABTA will work with the future government, as a strong and authoritative voice for ABTA members and the wider industry.