Business people walking in an airport terminal (Image: Getty)
With the autumn budget just around the corner, Britons are rushing to book their holidays in a bid to beat an expected tax hike. As the budget announcement looms on Wednesday, travellers are hoping to avoid the anticipated increase in Air Passenger Duty (APD) by booking their getaways within the next 48 hours.
Research by package holiday experts On the Beach reveals that nearly 40% of Brits plan to book their holidays on Monday and Tuesday to dodge the tax increase on flights departing from the UK. The looming hike has left millions anxious about affording holidays after Wednesday.
Zoe Harris, chief customer officer at On the Beach, warned: “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 blow to millions of Brits whose pockets will be hit hard for taking a week-long holiday.”
“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 levy imposed by HMRC on passengers departing from UK airports, varying according to distance and class of travel. Andy Woods from Tax Natives pointed out that the UK already charges one of the highest APD rates worldwide, significantly contributing to the rising cost of air travel.
Andy stated: “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 small increase of a few pounds can pounds 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.”
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