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What will the chancellor's Budget statement mean for travel?

Luxury
Gary Noakes
30 October 2024

Chancellor Rachel Reeves has laid out a "one off" Budget designed to tackle what the government claims is a black hole in the country’s finances of anywhere between £20 billion and £40 billion.

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Reeves said Wednesday's Budget was a 'once-in-a-parliament' financial reset (Credit: Twitter/X / @RachelReevesMP)

One thing confirmed was an expected increase in Air Passenger Duty. Reeves said APD "hadn’t kept up with inflation in recent years". She said the increase would be “no more than £2” on economy class short-haul fares. It means the rate on a flight to Europe will rise to £15.

However, Reeves said APD on private jet flights would increase by “up to” 50%, meaning APD of £450pp on a private jet flight from the UK to California. It is estimated changes will raise an extra £500 million £600 million a year.