Families are set to face the highest ever tax rates on flights as part of Labour‘s multi-billion-pound raid.
A bombshell new study has revealed that air fare levies for a family of four travelling to popular destinations like Walt Disney World in Florida will skyrocket above £400 for the first time following the increase.
Critics argue this move goes against the Government’s claim that it has not raised taxes on “working people” and is focusing on economic growth, considering the impact this will have on the travel industry.
Industry leaders are already contemplating job cuts and reduced investment due to Rachel Reeves‘s National Insurance attack on businesses.
In the October Budget, the Chancellor increased Air Passenger Duty (APD) a covert charge on fares also referred to as the “holiday tax” by 15% on most flights, which is over five times the current 2.6% inflation rate.
Research by the TaxPayers’ Alliance indicates that by April 2026, when Reeves’ APD increases come into effect, inflation will have risen approximately 111% since 1994 when the levy was initially introduced.
However, during the same period, APD for short-haul European destinations such as Spain will have surged 200%. For long-haul trips, it will have soared 920%, and 960% for ultra long-haul.
These measures mean the Chancellor will collect an additional £2.5 billion from APD between 2026 and 2030.
This contradicts Reeves’ claim that Air Passenger Duty (APD) has not kept pace with inflation, which she used as a justification for increasing it in her Budget speech.
The research indicates that under Reeves’ proposed increases, a family of four flying economy class to Disneyland Florida would be taxed £408 (£102 per person), representing a 16% increase on the current rate.
For ultra-long-haul destinations like Australia, the tax would be £424 (£106 per person), while a family of four heading to short-haul hotspots would face a charge of £60 (£15 per person), marking a 15% rise.
The levy applies to flights departing from the UK, so it does not apply to inbound journeys, and airlines typically pass the cost onto their customers.
Darwin Friend, Head of Research at TaxPayers’ Alliance, called for this tax to be frozen and brought down in line with inflation.
He said: “While the Prime Minister is able to swan off around the world without the need to pay APD from his own pocket, the taxpayers funding his travel have to work even harder to be able to afford an annual holiday.
“Ministers should immediately freeze this tax for an extended period to bring it more in line with inflation.”