TA Weekly Update – 12th December 2024

In this newsletter:

• Comprehensive Spending Review submission portal launched
• Business rates reform submission – deadline reminder, and call for input to TA
• ‘Drip pricing’ draft guidance published – feedback sought

Tourism Alliance shortlisted for prestigious Trade Association Forum award

 

Comprehensive Spending Review submission portal launched

The Treasury has opened its consultation for Phase 2 of its multi-year Comprehensive Spending Review (CSR). The consultation portal is now open and will close at 2359 on 9 February 2025.

“HM Treasury welcomes comments on existing spending priorities and suggestions for new ones. To help inform decisions for the upcoming Spending Review, your representation should include proposals that outline funding priorities and explain the rationale, costs, benefits, and feasibility of your suggestions. Submissions should be evidence-based, providing clear arguments on how they align with the objectives of the Spending Review, such as delivering value for money, supporting economic growth, and achieving strategic outcomes across government.”

We will be producing a submission in enough time to circulate to TA members in advance of the deadline in case that might be helpful for you in drafting your own submission.

 

Our submission will focus on funding for VisitBritain/VisitEngland, the importance of solving the crisis of local government financing which has had a devastating impact on spending on tourism priorities at a local level, and the importance of tackling our high levels of visitor visa costs.

Spending Review representation portal

The accompanying press release makes it clear that the Chancellor expects all Departments to review their spending afresh, rather than relying on old ways of working:

“Secretaries of State across government will need to allocate their budgets to ensure that governmentspending is focused on the Prime Minister’s Plan for Change, and that everypound of taxpayers’ money is spent well. The Chancellor will work with departmentsto prioritise spending that supports the milestones to deliver the Plan. Thisincludes boosting growth to put more money in working people’s pockets, fixingthe NHS, creating safer streets, making Britain a clean energy super-power andgiving every child the best start in life while strengthening our borders,national security and the economy.”

Investment in VisitBritain’s work is vital if the UK is to hit the Government’s inbound ambition, alongside the broader opportunities that the sector has to help the Government achieve its economic growth ambitions. On this, and on the impacts of visa costs and our international competitiveness, we have a strong and evidence-based case to make.

If you wish to share your organisation’s views and data to inform the TA submission please do so – the sooner the better.

 

Business rates reform submission – deadline reminder, and call for input to TA

You will recall that the Chancellor announced at the Budget a consultation on reform to the Business Rates regime, alongside the announcement of a massive reduction of relief from 75% to 40% for Retail, Hospitality and Leisure business (albeit with that 40% relief being made permanent).

 

The Transforming Business Rates consultation closes for written submissions in March. We will be submitting views around the importance of reform and rebalancing business rates in a fairer way. There are other issues such as simplifying the system so that certain properties in tourism no longer have to be subjected to multiple systems on one site, and the extension of improvement of relief to a longer period which would more accurately reflect the return-on-investment horizon for businesses.

Again, we would welcome your organisation’s input to our TA submission as soon as possible in order to ensure it reflects as best as possible the views of the whole industry. Please send your data and views on this to us by Friday 17th January.

 

‘Drip pricing’ draft guidance published – feedback sought

You will recall that the previous Government consulted on reform to ‘unfair commercial practices’ around ‘drip pricing’.

 

The Competition and Markets Authority (CMA) has published some draft guidance and is consulting on that guidance until 22 January 2025.

 

It appears that any genuinely additional products and services offered as part of the consumer booking journey will not be impacted. However, mandatory additional costs such as cleaning costs, booking fees etc, will fall under scope, and businesses will need to look at how to comply.

The issue of ‘fake reviews’ is also considered, in particular the practice of concealing the incentivising of reviews and the hosting of fake reviews.

 

The draft guidance may have an impact on certain businesses’ operations, so it is worth looking at in detail if this may affect your part of the sector.

 

If any specific problems with the guidance are identified, do make sure that CMA receive feedback by the deadline.

 

You may wish to look back on the Analysis and Briefing paper we produced at the time of the consultation for background information on this topic.

 

Tourism Alliance shortlisted for prestigious Trade Association Forum award

 

We are delighted to announce that the Tourism Alliance has been shortlisted in this year’s Trade Association Forum Awards in the category of “Publication of the Year” for our 2024 Tourism Facts and Figures report.

Congratulations too to all the other Tourism Alliance members who have been shortlisted in other categories: UKInbound, British Holiday & Home Parks Association, ABTA, Road Haulage Association (RHA), and British Beer & Pub Association. Good luck to all!TAF Awards ceremony on Thursday 27th February 2025.

The full list of finalists is here: https://tafawards.org/2025-shortlist/

 

The winners will be announced at the TAF Awards ceremony on Thursday 27th February 2025.