Travel bosses say holidays will become more expensive if taxes are increased in the Budget

Holidays will become more expensive if Rachel Reeves Tax increase in the next month BudgetThe UK’s two largest tour operators have said.

Tui’s UK managing director Neil Swanson said holidays would become too expensive for some people if chancellor does this while jet2 Chief executive Steve Heapy expressed fears the Budget would raise taxes by £50 billion a year and “screw up middle England”.

Ms Reeves has admitted she is considering possible tax rises and spending cuts in her budget on November 26 to address the £50bn shortfall estimated by some economists.

He used his first budget in October last year to announce £40 billion in extra taxes a year.

Mr Swanson warned that if taxes on businesses were increased further travel companies would be forced to raise holiday prices.

He said: “We will not be able to afford the additional costs that come there, and depending on what actually happens we will have to spend some or all of that.

“This will force some people out of the market.

“You want travel to be for everyone, not just those with deep pockets.

“We need this Government “To help us drive the growth the economy needs.”

He said: “If you put too many obstacles in our way, it will be really difficult to achieve.”

Mr Heapy said taxes were “higher than when the Conservatives were in power”, adding that his company had lost £25 million from the increase in employer national insurance contributions and the higher national minimum wage announced in the last budget.

“Mood music makes it seem like taxes will go up again,” he said.

“I don’t think it’s sustainable.”

Asked whether tax increases would increase holiday prices, Mr Heapy replied: “Possibly, yes, because if the Budget is not seen as good, the value of the (UK) currency could go down, and if the currency goes down, import costs will go up.”

Mr Heapy said his message to Ms Reeves would be “don’t continue to use middle England as a cash cow” as he did not believe it was possible to “tax our way out of an economically tight situation”.

He further said, “They keep talking about the development agenda. Well, let’s see it.”

“I haven’t seen anything yet that I think will result in significant growth in the economy, but I am optimistic.

“I hope the budget is a true development agenda budget.”

The Treasury has been contacted for comment.