Britain's two largest tour operators, TUI and Jet2, have warned that holiday prices could rise significantly if Chancellor Rachel Reeves increases taxes in the upcoming Budget. The warnings come ahead of the 26 November Budget, where Reeves is expected to address a £50 billion shortfall through tax rises and spending cuts.
Neil Swanson, managing director of TUI UK, said that if business levies increase, travel firms would have to pass on costs to customers. “We won't be able to absorb the extra costs... we'll need to pass some or all of that on,” he stated, adding that this would “price some people out of the market”. He urged the government to support growth rather than hinder it.
Steve Heapy, chief executive of Jet2, echoed these concerns, warning that further tax rises would amount to “screwing Middle England”. He noted that his company had already faced a £25 million hit from increased employer national insurance and the national minimum wage announced in the last Budget. Heapy cautioned that higher taxes could weaken the pound, raising import costs and ultimately holiday prices.
Heapy called on the Chancellor to avoid using “Middle England as a cash cow” and to deliver a “true growth agenda Budget”. He expressed scepticism that tax increases alone could solve economic challenges, saying, “I haven't seen much so far that I think will result in significant growth in the economy.”
