However, I was pleasantly surprised by the largesse on display and some of the measures announced, although time will tell if they actually happen, and if they are affordable from within our revenue structures as a country.
The immediate upside in the current environment is the coronavirus emergency response fund. It’s good to see a serious sum of money being deployed to combat this epidemic, which despite it being (hopefully) shortlived, will nonetheless likely have a substantial impact.
Particularly important for many travel businesses and people will be the payment of sick pay for smaller firms, the removal of business rates and statutory sick pay to all who self-isolate.
Outside of the immediate measures to combat the adverse impact of Coronavirus, some of the big positives I see for travel are:
- Increase in National Insurance earning threshold, saving people money.
- The investment in broadband nationwide (although maybe doing this with a Chinese company is a less wise plan).
- The investment in transport and infrastructure, although understanding how this will be deployed and the time it will take to see improvements are key.
- The abolishment of business rates for small shops – a perfect antidote to the much trumpeted demise of the high street and a real boost for many bricks-and-mortar travel agents.
Outside of travel, the removal of tax on sanitary products, the climate fund, the flood relief funds and flood defence investment and the focus on taxing plastic and non-recyclable material are all great initiatives. Are they big enough to make a real difference? Possibly not, but they are a step in the right direction and a recognition that these things are essential and need to be dealt with immediately.
No increase in tax on beer, wine and cider will be welcomed by many but one wonders whether this is just to ensure that the general population is so busy enjoying their booze, they don’t notice the other things that aren’t being done!
My cynical side wonders if this budget is just a smokescreen for the other failures of this government and a sweetener ahead of the privations of the coronavirus and a probable hard Brexit to come. But I am an optimistic person by nature, so I’m trying to quell this slightly uneasy nagging sense of doubt!
Overall, I would say that on the face of it, this is a positive budget which deals with the immediate issues and has some longer-term benefits.
My note of caution is that we should hold this government to account to deliver on everything it has promised, while ensuring the books balance for us to be able to afford it.
Giles Hawke is chief executive of Cosmos Tours and Cruises and Avalon Waterways.
