Holidaymakers clobbered with record £4.6billion flying taxes under Labour, official figures show, with families shelling out millions of pounds more to go abroad after levy hikes

Holidaymakers are being clobbered with record flying taxes under Labour, official figures show.

Data quietly published by HMRC shows holidaymakers – many of them families on hard-earned getaways – were hit with a record tax bill of £4.6billion in Air Passenger Duty (APD) last year (2025-26).

This was up by nearly £500million (12 per cent) from the year before after Labour hiked the levy on flights, also known as the 'holiday tax'.

Meanwhile, in the first quarter of this financial year – from April to July – a record £1.6billion was raked in from APD, netting the Treasury £66million more than in the previous year.

It means Labour is on course to rake in another record haul this year from APD, which is charged on flights per passenger.

Nearly a decade ago, in 2016/17, the Government collected just £3billion in APD. 

Former chancellor Rachel Reeves hiked APD by an inflation-busting 15 per cent for most fares in her first Budget after Labour won the 2024 general election.

It kicked in from April this year and meant families of four travelling in economy to some destinations this summer faced tax bills of more than £400 for the first time.

Data published by HMRC shows holidaymakers were hit with a record tax bill of £4.6billion in Air Passenger Duty last year

Data published by HMRC shows holidaymakers were hit with a record tax bill of £4.6billion in Air Passenger Duty last year

The Tories' transport spokesman Richard Holden has said that Labour 'never stops searching for ways to raise taxes on hard-working people so they can pay out more in benefits'

The Tories' transport spokesman Richard Holden has said that Labour 'never stops searching for ways to raise taxes on hard-working people so they can pay out more in benefits'

Chancellor John Healey is facing calls to freeze Air Passenger Duty in his first Budget in October

Chancellor John Healey is facing calls to freeze Air Passenger Duty in his first Budget in October 

And the cost for a family of four travelling in premium economy to destinations such as Dubai or Florida also hit nearly £1,000, as APD rates are higher for non-economy classes.

The HMRC figures sparked calls for Chancellor John Healey to freeze APD in his first Budget next month to help out hard-pressed families.

The Tories' transport spokesman Richard Holden said: 'Labour never stops searching for ways to raise taxes on hard-working people so they can pay out more in benefits.

'Now Andy Burnham has families taking a break from work in their sights.

'Holidaymakers are being clobbered with record taxes thanks to Labour, adding further to the cost of living and making hard-earned breaks from work less affordable.

'Meanwhile, Labour's tax hikes on hospitality businesses are driving up prices and closing businesses across the UK too.'

Former British Airways boss Willie Walsh, now head of global industry body the International Air Transport Association, said: 'APD is the highest air travel tax in the world, and equivalent to about 20 per cent of the average basic ticket price.

'It's ridiculous. To put it another way, the UK is 3 per cent of the global air passenger market, but it takes 8.9 per cent of all global aviation tax revenue.

'This fleecing of passengers and businesses is costing Britain's economy.

'Foreign investors are putting their money elsewhere.

'World-class service industries are being made uncompetitive. Exports and jobs are suffering.

'Tax rises are coming – and if air travellers are sacrificed to pay even more, it will be a disaster for Britain.'

Mark Tanzer, chief executive of the ABTA association of travel agents and tour operators, said: 'As we approach the Budget, we urge the Chancellor to give families and holidaymakers some much-needed breathing space and avoid further holiday-related tax rises, such as to Air Passenger Duty, where the UK already charges among the highest departure taxes applied anywhere in the world.'

APD rates are charged according to a three-tier scheme based on the distance being flown and amount of carbon emitted.

In April, the charge for those flying abroad up to 2,000 miles – which applies for most European destinations – was hiked from £13 per passenger in economy to £15. For premium economy, it was hiked to £32 per passenger.

For journeys up to 5,500 miles – such as Dubai, India or Florida – it was hiked from £90 to £102. Passengers in premium economy now pay £244 each.

And for even longer flights – such as to Japan or Australia – it was hiked from £94 to £106. For premium economy, it was hiked to £253 per passenger.

The levy is charged on flights taking off from a UK airport, meaning it is paid on outbound journeys but not inbound.

Children aged under 16 are not charged if they're travelling economy class.

The tax is almost always passed onto customers by carriers, meaning air fares increase when it is hiked.

And Tim Alderslade, boss of Airlines UK, which represents carriers such as BA, easyJet and Ryanair, said: 'Alongside the higher cost of fuel under the UK's sustainable aviation fuel mandate, any further APD increases risk hurting one of our growth success stories, making it much harder to keep flights affordable for families, businesses and international visitors.'

A Treasury spokesman said: 'There is no VAT on plane tickets and no duty charged on jet fuel, so it is right that Air Passenger Duty makes a fair contribution to public priorities, including cutting the cost of living.' 

Original source Holidaymakers clobbered with record £4.6billion flying taxes under Labour, official figures show, with families shelling out millions of pounds more to go abroad after levy hikes

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