The chief executive of Jet2.com and Jet2holidays, Steve Heapy, has warned the UK government not to treat the travel sector as a ‘cash cow’ ahead of the Autumn Budget, expressing deep concerns about new tax burdens.
Speaking at the Abta Travel Convention in Calvia, Mallorca, Heapy expressed fears that more workers will be pushed into a higher tax bracket with the November announcements.
“I am very concerned about the Budget. The government wants to raise £30bn to £50bn in taxes; this will come from the ‘squeezed middle class’,” he said.
“The increase in National Insurance contributions has cost us [Jet2] £25m. Any further tax increases will affect us again,” he added.
The Jet2 boss highlighted that the number of Britons in the highest tax bracket has doubled in the past 12 years, calling on the government to show respect for an industry that “delivers significant benefits to society and the economy”.
“The travel industry contributes a huge amount to the UK Exchequer. We employ thousands of people and holidays make a huge contribution to mental health. I hope the government doesn’t forget that and treats us with the respect we deserve,” he said.
Despite the uncertainty surrounding the upcoming budget announcements, Hippie said demand for travel remained “strong and steady”, describing holidays as “one of the most essential consumer spending needs”.
On the same panel, Neil Swanson, CEO of TUI UK & Ireland, shared fears of new tax burdens.
“People need reassurance that there will be no new taxes. Businesses cannot afford additional costs – they need support to grow,” he said.
“We would like to see customers book earlier, but there is a lot of price competition. People want to travel but are being pressured to book at the last minute – which is not good for anyone.”
