Ryanair boss slams Rachel Reeves ‘no clue how to deliver growth’ after Budget | Politics | News | EUROtoday

Ryanair’s outspoken CEO, Michael O’Leary, has sharply criticised Chancellor Rachel Reeves’ resolution to boost Air Passenger Duty on short-haul flights.

He claimed the will increase would stifle progress and drive up prices for British households.

The improve, introduced within the latest Budget, raises the obligation on financial system flights inside Europe by £2, to £15, and will increase the usual price on longer flights to £32.

In his critique, Mr O’Leary warned the extra prices would influence affordability, inflicting Ryanair to chop its UK flight schedules by as a lot as 10% and probably decreasing general air journey from the UK by round 5 million passengers.

The airline argues this lower in flights will harm tourism, scale back choices for British holidaymakers, and hurt financial progress in regional areas.

“This anti-growth tax hike will damage UK tourism, jobs, and economic growth, especially in the regions,” Ryanair mentioned in a press release.

“A family of four flying to Spain on a low-cost holiday next year will pay £60 in air travel taxes to a government whose Minister receives thousands in free clothes and concert tickets.”

Mr O’Leary emphasised that different European nations, together with Ireland, Hungary, and Sweden, have eradicated or lowered air journey taxes to stimulate tourism and journey.

“This week’s anti-growth air tax increase shows that Chancellor Rachel Reeves has no clue how to deliver growth in the UK economy,” he mentioned.

O’Leary said that Ryanair will now evaluation its flight schedules for the approaching yr, with the anticipated discount of capability probably shrinking flight availability and decisions for UK vacationers.

In her Budget speech, Chancellor Reeves defended the APD hike.

She mentioned: “Air passenger duty has not kept up with inflation in recent years, so we are introducing an adjustment, meaning an increase of no more than £2 for an economy class short-haul flight.”

Additionally, the Chancellor introduced a 50% obligation improve on non-public jets, which she mentioned would higher replicate their environmental influence.