UK Tax Hikes Put Summer Holidays on Hold

Brits are postponing their summer holiday bookings due to increasing tax pressures in the UK, an industry executive has warned. January, typically a peak booking month, saw a significant slowdown as consumers adopted a 'wait-and-see' approach, hoping for last-minute discounts. This trend is attributed to tax rises implemented by the Chancellor, including a freeze on tax thresholds and an increase in Air Passenger Duty (APD).

These tax changes have diminished disposable income, prompting travellers to become more cautious. The chief executive of Jet2 highlighted a market shift towards last-minute arrangements, a departure from the usual early booking patterns. This delay in purchasing decisions introduces considerable uncertainty for the travel sector. While package holidays are still sought for their guaranteed elements, the overall booking landscape has become less predictable.

A Treasury spokesperson countered that real wages have increased under the current government, alongside boosts to the national living wage and energy bill support. They also cited freezes on prescription fees, fuel duty, and rail fares as measures intended to support household finances.