Yesterday’s Autumn Budget announcement by Chancellor Rachel Reeves, which includes a notable increase in Air Passenger Duty (APD), a substantial APD rise for private jet users, and a £500 million pledge to improve local road infrastructure, has prompted insights from industry experts, highlighting implications for UK businesses in travel and transport.
Peter Slater, CEO of CMAC Group—a major provider of ground transport and travel management services—shared his perspective on how these fiscal measures are likely to affect businesses.
Slater commented: “The APD increase will impact the travel industry broadly. For short-haul flights, the rise may seem modest, but for businesses with regular short-haul travel needs, these additional costs will accumulate.
“This will push many firms to reassess travel budgets and look into alternative, cost-effective, and sustainable options.”
He also noted that the 50% APD hike for private jet users could shift demand toward commercial flights, fostering greener corporate travel solutions.
“Aligning with sustainability goals, this measure could encourage businesses to opt for less carbon-intensive options,” Slater said.
The £500 million investment to improve local roads and tackle potholes was welcomed by Slater, who underscored the importance of road quality in maintaining safe, efficient transport across the UK.
“Enhanced road conditions will not only reduce vehicle maintenance costs but also improve safety and reliability for logistics and employee commutes,” he stated.
Additionally, Slater praised the government’s commitment to connecting London Euston to the HS2 line, underscoring the benefits of a robust rail network for business travel and environmental sustainability.
“Improved rail infrastructure provides a sustainable, efficient travel option between major UK cities, which is crucial for business productivity,” he added.
Karen Dee, chief executive of AirportsUK, the trade body for UK airports, echoed the mixed responses, welcoming the extension of the advanced fuels fund by one year and the allocation of £975 million in R&D funding to support aerospace innovations towards zero-emission flights.
However, Dee voiced concerns about the APD increase, especially as airports work to upgrade security, promote sustainable travel, and modernise airspace.
“She stated, “If the government aims to make the UK the fastest-growing economy in the G7, it must support airports’ vital role in connectivity and economic growth, while reducing financial and regulatory pressures on the sector.”
