RYANIAR boss Michael O’Leary has accused the Chancellor of having “no clue how to deliver growth in the UK economy” in a post-Budget outburst.
The outspoken airline chief said Rachel Reeves’ decision to increase air passenger duty on short haul flights would lead it to cutting UK flights, reducing options for holidaymakers.
He stressed that the £2 extra charge would also further burden ordinary British families.
Air Passenger Duty (APD) is a 30 year old tax on flights that ia sutomatically applied when passengers book tickets departing from UK airports which was initially designed to offset the environmental impact of air travel.
A budget flight to Europe will now incur £15 of duty charges, while the standard rate is increased to £32.
The airline said “A family of four flying to Spain on a low cost holiday next year will pay £60 in air travel taxes to a Government whose Minister receives £1000’s in free clothes and concert tickets. “
“This anti-growth tax hike will damage UK tourism, jobs and economic growth, especially the UK regions, with regional airports being particularly damaged by this tax on ordinary families.”
Mr O’Leary said that Ryanair would now have to review its flight schedules and expects to cut its capacity to and from UK airports by up to 10 per cent next year.
This will reduce the choice of flights to destinations for Brits and reduce air travel by up to 5 million passengers, it said.
“This Labour Government promised to deliver growth but instead their first budget has damaged growth, damaged tourism, and damaged air travel to and from the UK. “
“At a time when Ireland, Hungary, Sweden and many regions in Italy have abolished air travel taxes, Chancellor Rachel Reeves idiotic decision to further raise the UK’s already high air travel taxes will deliver cuts, not growth.”
“This week’s anti-growth air tax increase shows that Chancellor Rachel Reeves has no clue how to deliver growth in the UK economy.”
Ms Reeves justified the increase in her Budget saying that “Air passenger duty has not kept up with inflation in recent years so we are introducing an adjustment, meaning an increase of no more than £2 for an economy class short-haul flight.”
She is hiking the increase of duty on private jets by a further 50 per cent.
ReutersMichael O’Leary has accused the Chancellor of having ‘no clue how to deliver growth in the UK economy’ in a post-Budget outburst[/caption]