Families face huge ‘£400 holiday tax’ as flights slapped with ‘highest ever levies’ in eye-popping budget raid
FAMILIES will be hit with a huge £400 holiday tax as flights are slapped with extortionate levies.
The "holiday tax" - known as Air Passenger Duty (APD) - will rise by 15 per cent on most flights from April 2026.
The levy is added to flights taking off from the UK and the cost is often passed down to customers.
According to a study by TaxPayers' Alliance this means a family of four flying to Disneyland Florida will be taxed £408.
This will increase to £424 - or £106 per person - for ultra long-haul destinations like Australia.
For comparison, in 1994 when it was first introduced APD was just £5 for short flights and £10 for long trips.
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Rachel Reeves introduced the tax increase because she claimed APD has not risen with inflation.
But the study suggests that by the time the hikes take effect, inflation will have gone up by roughly 111 per cent since the time the levy was introduced.
APD however will have increased by 200 per cent for short-haul flights in Europe and 920 per cent for long-haul trips.
The move is expected to deal a massive blow to the travel industry and has been criticised for targeting working people.
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Darwin Friend of TaxPayers' Alliance told the : "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."
This comes as industry bosses are already expected to slash jobs following the increase in National Insurance announced in this year's budget.
Tory transport spokesman Gareth Bacon said: "Farmers, pensioners, small businesses and now holiday-goers.
"Keir Starmer wants them all to pay to fund his inflation-busting pay rises for his union paymasters."
Former British Airways boss Willie Walsh added ADP was not just a tax on holiday but "drags down all of the UK".
He said: "Sir Keir Starmer has said growth is the 'number one priority' for his Government.
"If that is the case, why is he letting his Chancellor throttle aviation – which supports 1.6million jobs,
Generates £127billion pounds in GDP and which is the only way for the UK to rapidly move its goods and services abroad?"
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The Treasury said: "Unlike other sectors, no VAT applies to plane tickets and there is no tax on jet fuel. It is only fair that the aviation sector plays its part to help address the £22bn hole and restore economic stability needed for businesses to thrive.”
“Changes to the rate of APD have significantly fallen behind inflation in recent years. These changes will add just £2 for a family of four flying economy to Spain with under 16’s exempt.”
