Reform UK: We’ll abolish the tax on family holidays

At Heathrow Airport this morning, Nigel Farage and Robert Jenrick pledged to abolish Air Passenger Duty (APD) for short-haul family flights. 

Announcing the move, Nigel Farage said he was determined to “give families a break” and that Reform's policy would “put money back in people's pocket”. 

Reform's Shadow Chancellor Robert Jenrick said that abolishing the holiday tax for families would save an average family £45 on a holiday to Europe and £48 on a holiday in the UK. 

Reform's latest move to cut the cost of living comes as Labour's flights tax on family holidays increases on Wednesday. From 1st April, APD will rise to £8 on domestic economy tickets and £15 on economy tickets to Europe.

Reform would abolish the holiday tax on all domestic and short-haul tickets when an adult economy ticket is purchased alongside at least one under-18 ticket. This would include school trips and holidays shared between grandchildren and grandparents. 

The fully-costed plan would reduce tax intake into the Exchequer by £142m per year, and would come out of £40 billion of annual savings the party has generated through policies such as ending migrant welfare, ending low-level mental health PIP claims, and capping foreign aid. PwC economists have previously found that cutting APD could stimulate activity, boost employment and increase tax take.

It comes as the Labour Government proposes a new “tourist tax” that would give mayors the power to introduce local taxes on overnight stays. The proposed levy would add an extra £100 on a two-week break in the UK, and Oxford Economics has warned it threatens up to 33,000 jobs and could reduce tax receipts by £688 million. Reform's Shadow Chancellor Robert Jenrick has slammed the policy as part of Labour's “war on fun”, warning that “the last thing businesses and families need is yet another tax.”

In the last fortnight, Reform has announced a comprehensive plan to cut the cost of living. The Party have a fully costed plan to reverse the planned increase in fuel duty in September and cut energy bills by £200 by removing VAT, the carbon price support tax, and the Renewable Obligations from bills. 

Reform UK leader Nigel Farage said: 

“A Reform UK government will make your family holiday cheaper. 

“We believe that if you set your alarm, get up early and work hard then the government should give you a break.

“This Brexit benefit demonstrates the real difference a Reform government will make by putting money back in your pocket.”

Reform UK Shadow Chancellor Robert Jenrick said:

“Families across the country are struggling under the weight of the record tax burden. A Reform UK government would lighten the load, so it is a little easier for families to enjoy themselves. 

“Air Passenger Duty has been hiked as part of the mad net zero agenda, which hurts British businesses and punishes families for having some fun. 

“Reform UK will abolish the holiday tax for families and ensure the great family holidays continue for generations to come.”

A Heathrow spokesperson said: 

“Aviation is crucial to the UK's economy and high levels of air passenger duty are a barrier to connectivity and our ability to compete internationally. We welcome any proposals that would reduce air passenger duty.”

ENDS

Notes to Editors:

• Air Passenger Duty (APD) is levied on all flights that take off in the UK. Reform would abolish APD on all domestic and Band A trips where an adult ticket is purchased alongside an u18 ticket. The full list of Band A destinations can be accessed here: Rates for Air Passenger Duty - GOV.UK. 

Costings: 

We estimate that scrapping Air Passenger Duty for parents flying with children on short-haul and domestic routes would cost the Treasury around £142 million a year.

About 146 million passengers depart from UK airports each year. Roughly one in five is a parent travelling with a child under 16. Most of these families, around 82%, are flying within the UK or to nearby destinations like Europe, where APD is between £8 and £15 per person.

Waiving that tax for parents on those flights would cost £166 million in lost revenue. But cheaper flights mean more families travel, and that extra tourism spending brings back about £46 million in other taxes. After also allowing for a small amount of gaming (passengers rearranging bookings to qualify), the net cost comes to roughly £142 million per year, or £566 million over five years.

Savings to families:

A family of 4 (two parents, one child over 16, one child under 16) would save the following if flying with EasyJet this summer from London Gatwick. 

PwC's report can be found here.