Higher air travel taxes means higher UK access costs, which makes the UK a less competitive destination for tourism and airline investment. Less tourism means fewer flights, higher fares, and job losses which will be especially damaging for UK Regional Airports and for UK domestic flights (which pay APD on the double). If the new Labour Government are serious about their claims to deliver “growth” then they should start by scrapping APD and lowering air access costs to the UK which will stimulate Tourism, giving rise to rapid growth in visitor numbers, regional tourism and jobs.
Ryanair’s Michael O’Leary said: “As an Island economy on the periphery of Europe, it is vital that the UK lowers air access costs so that low fare Airlines can grow tourism, traffic, visitor numbers and jobs especially in the regions. Instead, Chancellor Rachel Reeves this week has damaged the UK’s growth prospects and made air travel much more expensive for UK families travelling abroad on holidays, or to visit friends and family.
“This Labour Govt promised to deliver growth but instead their first budget has damaged growth, damaged tourism, and damaged air travel to/from the UK. At a time when Ireland, Hungary, Sweden and many regions in Italy have abolished air travel taxes, Chancellor Rachel Reeves idiotic decision to further raise the UK’s already high air travel taxes will deliver cuts, not growth.
“This anti-growth air tax increase shows that Chancellor Rachel Reeves has no clue how to deliver growth in the UK economy. This short-sighted tax grab will make air travel much more expensive for ordinary UK families going on holidays abroad and will make the UK a less competitive destination compared to Ireland, Sweden, Hungary and Italy where these Govt’s are abolishing travel taxes to stimulate traffic, tourism, and jobs growth in their economies. Ryanair will now review its UK schedules and expects to cut capacity to/from UK airports by up to 10% in 2025. This will reduce air travel to/from the UK by up to 5m passengers as the Labour Govt’s budget delivers higher taxes and tourism declines not growth.”
