With the autumn budget set to be announced in the next few days, Brits are scrambling to book holidays before the tax increase. It comes as in the next 48 hours travellers hope to avoid the anticipated increase to Air Passenger Duty (APD).
On Wednesday the budget will be announced and according to research by package holiday specialists On the Beach, more than a third of Brits (39%) are set to book their holidays on Monday and Tuesday to ensure they aren’t affected by the increase in tax put on flights out of the UK.
The increase has millions worried about how they will be able to afford holidays after Wednesday. Zoe Harris, chief customer officer at On the Beach said: “If ADP is increased, the price of flights will go up and holidays will be more expensive, that’s a fact.
“A further increase would be a kick in the teeth to millions of Brits whose pockets are set to be punished for going away on holiday for a week.
“We’re expecting millions of Brits to try and beat the increase by booking their summer holidays in the next 48 hours.”
APD is a charge by HMRC on flyers departing from UK airports, varying according to distance and class of travel. Andy Woods from Tax Natives highlighted that Britain already charges one of the steepest APD rates globally, contributing heavily to the soaring expense of air travel.
Andy said: “APD was already increased earlier this year, but with the Chancellor expected to target this tax again, the financial burden on travellers is likely to grow significantly. In April, we saw economy class domestic flight APD rise by 50p, short-haul overseas flights increased by £2, and long-haul flights of up to 5,500 miles saw an 11% surge, from £194 to £216.
“Any additional increase in APD will directly affect flight prices, making holidays more expensive for UK travellers. Even a seemingly small increase of a few pounds can have a large impact, particularly for families booking multiple tickets or those opting for long-haul destinations. When you multiply the increase by several passengers, the extra cost becomes significant.”