Travel Chiefs Warn Budget May Price Out Holidaymakers

Published: 20 October 2025. The English Chronicle Desk. The English Chronicle Onl

British travellers could soon find their holidays becoming more expensive if Chancellor Rachel Reeves follows through with tax hikes in her upcoming Budget, according to warnings from the heads of the UK’s two biggest travel firms.

Neil Swanson, managing director of Tui UK, cautioned that “holidays will become too costly for some people if the Chancellor does this,” while Jet2 chief executive Steve Heapy said higher taxes could end up “screwing Middle England.” Both executives fear that the Chancellor’s plans to plug a £50 billion deficit will hit businesses and consumers hard.

Ms Reeves, who is expected to deliver her Budget on 26 November, has signalled that both tax rises and spending cuts are on the table as she seeks to stabilise the nation’s finances. Her previous Budget last October already introduced £40 billion in additional annual taxes, which many in the business community believe have strained the private sector.

Swanson warned that further tax increases on companies would inevitably lead to higher prices for consumers. “We won’t be able to absorb the extra costs that come along there, and we’ll need to pass some or all of that on,” he said. “That’s going to price some people out of the market. You want travel to be for everyone, not just for people with deeper pockets.”

He stressed that the travel industry, which contributes significantly to Britain’s economy and employment, needs support, not obstacles. “If you put too much in our way, it’s going to be really difficult to achieve the growth that the Government says it wants,” he added.

Steve Heapy echoed these concerns, noting that current taxes are already “even higher than when the Conservatives were in power.” He pointed out that Jet2 had suffered a £25 million hit due to increased employer national insurance contributions and a higher national minimum wage introduced in the last Budget.

“The mood music seems to be that tax will go up again,” Heapy said. “I don’t think it’s sustainable.”

He also warned that tax rises could weaken the pound, pushing up import costs and further driving up holiday prices. “If the Budget is perceived as not being great, the currency could reduce, and if the currency reduces, import costs will rise,” he explained.

Heapy’s message to the Chancellor was clear: “Don’t continue to use Middle England as a cash cow.” He argued that sustainable economic growth cannot be achieved through excessive taxation, saying, “They keep talking about a growth agenda. Well, let’s see it. I haven’t seen much so far that I think will result in significant growth, but I remain hopeful.”

As Britain braces for what could be another challenging fiscal announcement, the travel industry fears that higher taxes may not only hurt their businesses but also make the dream of affordable holidays out of reach for many ordinary families.