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The Budget, Travel and You

24 June 2010 11:24

As the country digests the outcomes of Tuesday's emergency budget in the UK, you may be left wondering how it will affect your organisation when booking travel.


The key budgetary outcomes relating to travel are:

Aviation: Air Passenger Duty
The Chancellor said that Air Passenger Duty (APD) will remain for the time being and rise again in November as planned. Air tax is already higher in the UK than elsewhere in Europe and this will mean that the revenue raised will increase from £1.9 billion this year to £3.8 billion in 2015-16. 

However, the Chancellor has promised he will explore changes to the aviation tax system and this could mean replacing APD with a 'per plane duty' later in the year. Any major changes would be subject to public consultations, with a report expected in the autumn. It is not yet known how this will be calculated e.g. on emissions, load factor etc. and what the parameters will be. 

VAT, Flights and Rail
Although VAT is set to rise from 17.5% to 20% from 4thJanuary 2011, this will not directly effect the value of your flights or rail tickets as they are not subject to VAT.

We will continue to keep you updated on any further political movements that may affect your travel procurement, however, if you have any questions or concerns, please do not hesitate to contact your account manager or email tellmemore@keytravel.com 

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