Travel bosses problem vacation value warning over Rachel Reeves’s tax proposals

British holidaymakers face the prospect of pricier getaways if Rachel Reeves implements tax will increase in subsequent month’s Budget, warn the UK’s two largest tour operators.

Tui’s UK managing director, Neil Swanson, warned that “holidays will become too costly for some people if the Chancellor does this”.

Jet2 chief government Steve Heapy, in the meantime, feared the Budget may elevate taxes by £50 billion yearly, “screwing Middle England”.

Ms Reeves is exploring tax rises and spending cuts for her 26 November Budget, aiming to handle an estimated £50 billion fiscal deficit.

Her inaugural Budget final October noticed the announcement of an extra £40 billion in annual taxes.

Mr Swanson warned that journey corporations can be compelled to boost vacation costs if taxes on companies have been elevated additional.

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He mentioned: “We won’t be able to absorb the extra costs that come along there, and we’ll need to pass some or all of that on, depending on what actually happens.

“That’s going to price some people out of the market.

“You want travel to be for everyone, not for just the people who’ve got the deeper pockets.

“We need the Government to help us drive some of that growth that the economy needs.”

He mentioned: “If you put too much in our way, then that’s going to be really difficult to achieve.”

Mr Heapy mentioned that taxes have been “even higher than when the Conservatives were in power”, together with his firm struggling a £25 million hit from elevated employer nationwide insurance coverage contributions and the next nationwide minimal wage introduced on the final Budget.

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“The mood music seems to be that tax will go up again,” he mentioned.

“I don’t think it’s sustainable.”

Asked if tax rises would result in a rise in vacation costs, Mr Heapy replied: “Probably, yes, because if the Budget is perceived as not being great, the (value of the UK’s) currency could reduce, and if the currency reduces, import costs will rise.”

Mr Heapy mentioned his message to Ms Reeves can be “don’t continue to use Middle England as a cash cow” as he didn’t imagine it was doable to “tax your way out of an economically tight spot”.

He added: “They keep talking about a growth agenda. Well, let’s see it.

“I haven’t seen much so far that I think will result in significant growth in the economy, but I remain hopeful.

“I hope the Budget is a true growth agenda Budget.”

The Treasury was approached for a remark.