Labour's £400 tax hit on family holidays: Passengers to be hit with highest ever levies on flights in multi-billion-pound raid

Families will be hit with the highest ever tax rates on flights in Labour's multi-billion-pound raid on holidaymakers. In the October Budget, the Chancellor hiked Air Passenger Duty – a stealth levy on fares also known as the 'holiday tax' – by 15 per cent on most flights, which is more than five times the current 2.6 per cent rate of inflation. A study by the TaxPayers' Alliance shows by April 2026, when Ms Reeves's APD hikes take effect, inflation will have risen by about 111 per cent since 1994 when the levy was first introduced. Tory transport spokesman Gareth Bacon was among several critics of the plan to increase air fares The cost for a family of four to popular destinations such as Walt Disney World in Florida will surge above £400 for the first time after the hike And Tim Alderslade, boss of Airlines UK, which represents major carriers including BA, Virgin, easyJet and Tui, said: 'APD already makes the UK less competitive and the increases will hit working people in the pocket and make it harder for airlines to put on and sustain new routes.' The study shows that, under Ms Reeves's hikes, a family of four in economy class will be taxed £408 to fly to Disneyland Florida – a 16 per cent hike on the current rate.