Travel bosses warn holidays will become ‘too costly’ for some if taxes are raised
Travel companies could be forced to raise holiday prices
- British holidaymakers face the prospect of more expensive getaways if Rachel Reeves implements tax increases in the upcoming Budget, according to the UK's two largest tour operators.
- Neil Swanson, Tui's UK managing director, warned that travel companies would be forced to raise holiday prices if business taxes are increased, potentially making holidays too costly for some.
- Jet2 chief executive Steve Heapy expressed fears about a potential £50 billion annual tax increase, stating it would negatively impact 'Middle England' and could lead to a reduction in the pound's value, increasing import costs and holiday prices.
- Ms Reeves is reportedly exploring tax rises and spending cuts for her 26 November Budget, aiming to address an estimated £50 billion fiscal deficit.
- Both tour operators stressed that they cannot absorb further business cost increases and would be compelled to pass them on to consumers, urging the government to support economic growth rather than imposing additional burdens.