Strengthening the UK Economy by Unlocking the Potential of Business Travel
Business travel is far more than just flights and hotel stays - for the UK economy it is a vital gateway to global trade, inward investment and higher-value growth. For businesses exporting goods and services, sending teams abroad, welcoming overseas partners and maintaining global connectivity is fundamental to their success. As a travel management leader we believe the upcoming Budget should recognise this by introducing measures which boost business travel - and thereby deliver tangible economic benefits for UK exporters, UK-based employees who travel, and the country as a whole.
Why business travel matters
Our sector may be a part of the broader travel & tourism industry, but its role is strategically distinct: enabling trade, innovation and client engagement across borders. Research from the Business Travel Association - shows business travel supports around £27.7 billion in annual gross value added (GVA) in the UK and sustains over 280,000 jobs. A separate study by the Global Business Travel Association warns that UK firms could miss out on £319 billion in potential sales if business travel isn’t sufficiently supported. Meanwhile the wider travel and tourism sector contributes more than £237 billion to GDP, equating to almost 9.5 % of UK economic output.
In short: business travel is a high-leverage enabler for UK plc - yet it is often overlooked in fiscal policy.
Key industry data & quotes
The Advantage Travel PArtnership’s latest Global Business Travel Review found an aggregated value of £16.5 billion in transactional business travel bookings from 01 January 2019 to 31 December 2024, covering some 33.7 million records. The report shows “new transactions for 2024 significantly out-performed 2023 by 15.5 %”.
In their 2023/24 financial year Advantage members recorded global sales turnover of £17 billion, of which UK-based members contributed £8.8 billion — with £6.3 billion from business travel. “2024 marked a watershed year for the UK Outbound Travel industry … our industry demonstrated remarkable resilience and adaptability.” said Chair Steven Esom.
From the Focus Travel Partnership: its membership of 48 TMCs has a turnover in excess of £1 billion, leveraging collective size to negotiate travel deals, as “the leading business travel consortium in the UK for the independent sector”.
These data points illustrate that business travel is recovering, strong in volume growth and critical in value creation for UK business.
Our ten Budget asks and their economic logic
Here are the ten areas we believe the Chancellor should prioritise - with a clear eye on boosting business travel and thus reinforcing the UK’s export and trade ambitions.
Reduce Air Passenger Duty (APD) for business travellers Lowering APD on routes used for business meetings, exports, international client travel and inbound investor visits would reduce the cost barrier to global engagement. With business travel contributing ~£27.7 billion GVA, reducing cost friction could help that number rise.
Incentivise low-carbon travel choices for business journeys Offering tax relief or capital allowances for companies choosing rail over short-haul flights, or accrediting sustainable hotel stays, aligns with the UK’s net-zero goals and supports UK exporters seeking green credentials. This helps business travel become more sustainable, thereby supporting long-term export competitiveness.
Simplify VAT recovery on international travel SMEs exporting from the UK often face administrative burdens when reclaiming VAT on business travel costs abroad. Streamlining the process means faster cash-flow and frees up resources for business expansion.
Invest in rail infrastructure and inter-city connectivity for business travellers Improved rail links between UK hubs (e.g., London, Manchester, Birmingham) reduce domestic travel time and carbon impact, making UK firms more agile in hosting and attending meetings nationwide. This, in turn, supports export readiness and regional growth.
Support regional airports as business gateways Enhancing connectivity from regional airports to key European and global cities broadens access for UK exporters based outside London. More direct routes means less time wasted, lower cost of travel, improved service to clients abroad - and increased export volume.
Expand funding for export trade missions and business travel-linked events Government-backed missions and conference attendance directly support UK exporters in winning overseas contracts. Given the £319 billion in potential sales at risk for UK firms without robust business travel, this kind of support is critical.
Improve incentives for hotel stays linked to business travel Tax relief on business accommodation — particularly in UK cities — would boost the hospitality sector while supporting workers travelling for meetings, training and client visits.
Provide clearer HMRC guidance on deductible travel & accommodation expenses Finance teams spend time-consuming effort interpreting the rules. Better clarity reduces administrative burden, ensuring more firms feel confident investing in business travel to win overseas business.
Accelerate digital border and connectivity improvements Faster eGates, biometric verification, smoother customs & immigration processes shorten traveller waiting times. For inbound overseas clients visiting the UK (and UK employees returning from travel), this builds UK’s attractiveness as a trading partner.
Recognise in the Budget that travel = trade: embed national strategy The Chancellor should commit to a strategy that treats travel as a core component of trade and growth policy - recognising that business travel underpins UK export competitiveness, investment attraction and innovation diffusion. By doing so, the full GVA and employment benefits of business travel can be amplified.
The potential upside for the UK economy
If the above measures were implemented, the cumulative impact could be substantial:
Even a modest increase of 10% in business-travel-enabled activity would raise GVA by ~£2.7 billion (based on the £27.7 billion base).
Improved connectivity, lower costs and streamlined admin would help unlock parts of that £319 billion sales potential for UK firms.
The multiplier effects spread into hotels, rail, airports, hospitality supply chains and regional economies - leveraging the wider £237 billion travel & tourism contribution. In other words, this is not just about making travel cheaper or easier - it’s about unlocking growth, boosting UK exports, powering regional business travel, and supporting thousands of jobs across the country.
What it means for UK-based business travellers
For UK employees tasked with travel by air or rail, or hotel stays for work:
Lower travel costs mean companies are more willing to send you abroad to meet clients, close deals and build pipelines.
Improved rail or hotel connectivity means less time wasted, more productive meetings, and better work–life balance.
Sustainable travel options mean your company’s global footprint improves, benefiting your reputation.
Clearer reimbursement and expense rules mean fewer headaches when you’re on the move.
In conclusion
“Business travel is not a cost centre - it is a growth engine. The upcoming Budget provides an opportunity to re-frame travel as a strategic asset for UK exporters, for trade, for connectivity and for the UK economy. By adopting these ten measures, the Government can accelerate export growth, enhance UK’s global competitiveness and deliver real benefits for those UK employees who travel for business.”
Scott Pawley, Managing Director
