Autumn Budget 2026: What It Means for Business Travel
On 28 October 2026, Chancellor John Healey delivered his first UK Autumn Budget to Parliament. It was focused on helping households and businesses manage rising costs while keeping government finances under control.
While there were no major changes announced to Air Passenger Duty, several announcements could have implications for business travel budgets for sports, media and entertainment organisations in the years ahead. Here’s what the key measures mean for those managing travel programmes.
No APD Freeze as Aviation Faces Rising Carbon and Cost Pressures
While the Budget did not increase Air Passenger Duty (APD), it also did not freeze or reduce it. For businesses that rely on air travel, this means existing aviation taxes remain in place at a time when costs are already under pressure.
The Budget also confirmed plans to extend a carbon tax to imported jet fuel. This expansion to include jet fuel and other refined products will be subject to consultation, but if it goes ahead it will lead to additional charges on imported fuel.
It’s too early to say exactly how much impact this will have on airfares, but the overall direction is clear. Airlines are facing growing pressure to reduce emissions and invest in more sustainable fuels. Combined with the lack of APD relief, this means environmental and regulatory costs are likely to become a bigger factor in the cost of air travel in the years ahead.
Overnight visitor levy moves closer
Alongside the Budget, the government confirmed plans to introduce legislation that will allow strategic authorities in England to implement an overnight visitor levy on accommodation stays.
The visitor levy is intended to help local authorities fund the infrastructure and services that support tourism. By generating additional revenue from overnight stays, destinations can invest in facilities, public spaces and local services while helping to manage the growing impact of visitors. Local authorities are expected to develop their proposals ahead of implementation from around 2028.
While the levy is not expected to have an immediate impact, it is currently planned to apply to all overnight stays, whether someone is travelling for business or leisure. This means accommodation costs could rise in areas that choose to introduce it.
The levy would be set by local authorities and charged as a percentage of the room rate, so business travellers may see an extra charge added to hotel stays in some destinations.
For organisations with frequent domestic travel, the overall impact will depend on which areas introduce the levy and how much they decide to charge. As a result, businesses may want to keep an eye on developments and factor any future costs into their travel budgets.
Business mileage rates increase
One of the most significant announcements for businesses was an increase in the tax-free mileage rates that employees can claim when using their own vehicle for work.
From April 2026, the approved mileage allowance for cars and vans increased to 55p per mile for the first 10,000 business miles, with the higher mileage rate increasing to 35p from April 2027.
Employees who use their own vehicle for work will be able to claim more towards the cost of fuel, maintenance and other running costs. For employers, this may mean higher mileage expenses, but it also helps ensure staff are fairly reimbursed when travelling for business.
Businesses should review their travel and expenses policies to make sure mileage reimbursement rates reflect the updated HMRC allowances.
Fuel duty freeze extended
The government confirmed the temporary 5p-per-litre fuel duty cut will remain in place and postponed the planned inflationary increase until July 2027.
For organisations with travelling teams, vehicle fleets or significant road travel requirements, the extension provides welcome short-term cost certainty.
While fuel prices will continue to fluctuate, the decision helps limit additional increases in driving costs during the coming months.
Focus on electric vehicle affordability
The Budget also included measures aimed at reducing electricity costs and supporting the transition to electric vehicles, including proposals to lower costs at public EV charging points.
For businesses considering fleet electrification, lower charging costs could improve the long-term business case for EV adoption.
Investment in transport infrastructure
The Budget also confirmed further investment in roads, rail and local transport across the UK. The aim is to improve connections between towns and cities, support local economies and make travel easier for both people and businesses.
Better roads, rail links and local transport networks can make travelling for work easier, quicker and more reliable. While these improvements won’t happen overnight, businesses will be hoping that investment leads to smoother journeys, better connections and less disruption for travellers in the years ahead.
What should businesses do now?
The overall message from this year’s Budget is one of stability rather than significant change. However, several measures could still affect the future cost of business travel.
The planned introduction of overnight visitor levies, continued investment in transport infrastructure and increasing environmental costs within aviation are all likely to influence travel budgets over time. Alongside ongoing global uncertainty, these changes mean businesses should keep a close eye on travel costs and review plans regularly to ensure budgets remain on track.
