BUSINESS NEWS


Rachel Reeves has committed to


extending the DfT’s Advanced Fuels Fund to support production of


sustainable aviation fuel to 2029-30; inset, tourism minister Chris Bryant


Reeves’ review ‘largely neglects outbound sector’


Analysis: Chancellor’s cuts hit departments overseeing travel, says Ian Taylor


The government Spending Review on June 11 so matched expectations as to prove something of an anti-climax. Chancellor Rachel Reeves unveiled


increased spending for the NHS and defence, along with funding for regional transport and ‘affordable’ housing, but budget reductions almost everywhere else. The headline figures were delivered


alongside pledges to “build strong digital and technology foundations, tackle urgent cybersecurity and technical resilience risks, modernise public service delivery and drive


48 19 JUNE 2025


a major overhaul in government productivity and efficiency”. This will occur alongside


“all departments reducing their administration budgets by at least 16% in real terms by 2029-30”. The meat of the review for travel


was in the spending cuts at departments the sector deals with most regularly – Transport (DfT), the Foreign Office (FCDO), Business and Trade (DBT), the Treasury, Home Office and Culture, Media and Sport (DCMS). The DfT will see a 10% cut in


its ‘real’ budget by 2028-29 and 15%


by 2029-30. The Home Office and Treasury will see the same, as will DCMS, which has the smallest budget of any department. The DBT will see a 12% reduction


in real spending by 2028-29 and 15% by 2030, and the FCDO a 13% cut by 2028-29 and 17% the following year. Put another way, the DfT will


suffer real terms cuts of 5% a year and the FCDO of 6.9%. On the plus side, there will be £15.6 billion in funding


Continued on page 46 travelweekly.co.uk


BUSINESSNEWS


PICTURE: Shutterstock/Martin Suker; Chris McAndrew/UK Parliament


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