'Cash grab' travel tax will see UK government charge £1,000 for long-haul family holiday

Air Passenger Duty (APD) is a type of departure tax on flights leaving from UK airports. The cost is usually passed on to the passenger and is included in the ticket price, and APD raises revenue for the UK government.

The increase represents a rise upon a rise, as APD will also be going up above inflation on April 1, 2026.

As part of a push to boost public finances and encourage more sustainable travel options, Keir Starmer's government intends to increase APD rates from April next year, with a 50 per cent rise for private jets and general increases for other flights.

The combined increases mean that by the summer of 2027, a family of four flying in premium economy to Orlando will pay over £1,000 in tax to leave the UK, according to The Telegraph. 

By 2027, adults flying in a class above economy to Europe will pay £33.04. Those flying long-haul in a premium seat will be charged up to £261.25.

Willie Walsh, former chief executive at British Airways, has previously described APD as a 'cash grab masquerading as a green tax.'

Last month he led calls for the Chancellor to spare travellers from being ‘fleeced’ in the Budget by ditching her plans to hike the ‘holiday tax’.

Willie Walsh, former chief executive at British Airways, has previously described APD as a 'cash grab masquerading as a green tax'. Heathrow Airport is pictured

In Rachel Reeves ' budget last week, she announced that Air Passenger Duty would rise with inflation in 2027 (file image)

Heathrow, which already pays the highest rate in the country, is set to see its rate bill go from £117 million to £240million in three years, according to tax advisor company Ryan LLC.

The UK's biggest hub will see a 353 per cent increase in its rateable value in 2026, in comparison to its valuation in 2023.

London Gatwick Airport will also see its rate bill more than double, and will be hit with an £80million charge by 2028-29.

Meanwhile, Manchester Airports Group will be charged £75million. It owns East Midlands Airport and Stansted.

The chief executive of AirportsUK, Karen Dee, told The Telegraph how holidaymakers will be impacted by the bill increases.

She said: 'It's a short-sighted move that passengers will feel in their pockets with both hard-working families and business flyers experiencing price rises and more limited choices.'

Ryanair's CEO also accused the Chancellor of having no idea how to grow the UK economy over the government's push to raise taxes on passenger flights. 

Michael O'Leary warned that the policy will see airlines move planes out of the country. He said there had been a trend of European governments rolling back 'mad environmental taxes' and subsequently being rewarded with bumper economic growth. 

Ryanair boss Michael O'Leary warned that the policy will see airlines move planes out of the country (file image)

Global industry body International Air Transport Association (IATA) outlined how the nation had become one of the more costly locations across the continent for travel by plane, Business Traveller reports.

Several factors have played into this - including the country's growth outlook and taxes. Costs for airlines to operate in the UK, as well as the nation having some of the highest ticket taxes across Europe, have contributed to the issue.

The country is declining in popularity too. Airlines, including easyJet, Ryanair and British Airways, recently reported a reduction in international tourists visiting the UK, as per Travel And Tour World.

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