Anger as Labour launches multi-billion pound raid on holidaymakers with stealth levy on air fares
Daily MailRachel Reeves yesterday launched a multi-billion pound raid on holidaymakers with inflation-busting hikes in flying taxes. The duty - a stealth levy known as the ‘holiday tax’ - will increase by £2 to £15 for these flights For long-haul economy passengers to destinations like the Caribbean, South Africa and the Far East, the levy will be hiked by £12 to £106 The Tories’ transport spokesman Helen Whately said: ‘You name it, Labour will tax it. ‘That’ll not only hit holiday-makers; if you fly regularly for work it’s yet another tax on working people and a blow for businesses in today’s Budget.’ Former British Airways boss, Willie Walsh, said: ‘The government’s plans to increase air passenger duty revenues by almost 50 per cent over the next five years is bad news for the British economy in desperate need of links to world markets. ‘After the recent investment summit, the government said it was looking to attract “growth in every part of the UK” and now it is doing the opposite.’ Rachel Reeves today launched a multi-billion pound raid on holidaymakers with inflation-busting hikes in flying taxes Earlier this month the Mail revealed how Ms Reeves was weighing up inflation-busting hikes to the levy as part of a ‘polluter pays’ plan to raise revenue for Labour’s spending plans The Budget tax hike rivals 1993's eyewatering revenue-raiser in the wake of Black Wednesday - and might be even bigger if measured at current prices rather than as a proportion of GDP Earlier this month the Mail revealed how Ms Reeves was weighing up inflation-busting hikes to the levy as part of a ‘polluter pays’ plan to raise revenue for Labour’s spending plans. Karen Dee, chief executive of trade body AirportsUK, said the move was ‘disappointing’, adding: ‘If the Government is serious about realising its aim for the UK to become the fastest growing economy in the G7, then it must recognise and champion the role that airports play in growth and international connectivity, and minimise the cost and regulatory burdens imposed.’ Tim Alderslade, chief executive of Airlines UK, which represents UK-registered carriers, said APD ‘already makes the UK less competitive’ and further increases will ‘impact growth, directly hitting the pockets of ordinary travellers and making it harder for UK airlines to put on new routes’.
History of this topic
Ryanair blames Reeves’s ‘idiotic’ tax grab as it cuts thousands of flights
The Telegraph
Labour plots a tax raid on your holidays with stealth levy on air fares set to be announced in upcoming Budget cash grab
Daily Mail
Flying in comfort will cost more after air passenger duty rise
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