Healey’s First Budget and the Travel Bill

Chancellor John Healey delivers his first Budget on Wednesday 28 October 2026. It is also the first under Prime Minister Andy Burnham. Travel’s lobby has made its case, and the outcome matters most to the clients who fly premium. Air Passenger Duty (APD) on long-haul business and premium economy seats is already in the hundreds of pounds per person.

Where APD stands

From 1 April 2026, HMRC’s rates for a flight from the UK are:

• Band A (short haul): £15 economy (reduced rate), £32 premium cabins (standard rate).
• Band B (long haul): £102 economy, £244 premium cabins.
• Band C (furthest long haul): £106 economy, £253 premium cabins.
• Higher rate (mainly private jets): £1,097 in Band B and £1,141 in Band C.

HMRC has already published higher rates for 1 April 2027.

What the trade is asking for

ABTA‘s submission to HM Treasury on 10 September asks the government to:

• freeze APD rates for the rest of this Parliament
• remove children from APD entirely, whatever cabin they fly in
• reform how premium economy is treated
• ringfence visitor levies and administer them transparently
• reform business rates for high-street agents.

ABTA also wants the UK-EU Youth Experience Scheme delivered urgently, with help for school travel.

“The new Prime Minister and his cabinet have an incredible opportunity in their first budget to support the industry by avoiding further travel tax increases,” said Luke Petherbridge, ABTA’s director of public affairs.

ABTA and UKinbound backed the pitch with York Aviation research published on 24 September. It puts international travel’s contribution to the UK economy at £88.5bn a year, up from £80bn, and says it supports 1.4 million jobs. ABTA’s submission says outbound travel alone accounts for £52bn of gross value added and more than 818,000 jobs.

The visitor levy is coming

On 10 September the government published its response on an overnight visitor levy in England. Mayors and leaders of strategic authorities will be able to charge visitors a percentage of the cost of their accommodation. ABTA opposes it. “The decision to pursue a percentage-based model, which has already been recognised to be problematic in Scotland, is especially concerning,” said Petherbridge. Euronews reports the levy is uncapped but expected to stay under 5%, and that several mayors, including London’s, have pledged to keep below that level. Edinburgh’s 5% levy took effect in July 2026, according to Euronews.

For advisors

• Long-haul premium families: ABTA’s ask to exempt all children from APD would cut the cost of business-class family trips. Wait for 28 October before you promise clients anything.
• Quote APD as a separate line on premium long-haul proposals, so any change after the Budget is easy to explain.
• Inbound and UK-stay programmes: a percentage levy will raise the price of London hotels once a mayor adopts it. Check rate-validity dates on 2027 contracts.
• Watch the Budget documents on 28 October for APD rates from April 2027 and any change for children or premium economy.

Sources

• Ross Martin: Budget date of 28 Oct 2026 announced by Chancellor John Healey, citing HM Treasury
• HM Treasury, Budget date announcement
• HMRC, APD rates
• ABTA, Autumn Budget representation, 10 Sep 2026
• ABTA and UKinbound, international travel worth £88.5bn, 24 Sep 2026
• ABTA statement on overnight visitor levy, 10 Sep 2026
• MHCLG and HM Treasury, visitor levy consultation and government response, 10 Sep 2026
• Euronews, 11 Sep 2026