Jet2 boss urges government not to use travel industry as ‘cash cow’

Jet2.com and Jet2holidays boss Steve Heapy has urged the government not to use the travel sector as a “cash cow” as concerns grow about the government’s autumn Budget.

Speaking at Abta’s Travel Convention in Calvia, Heapy voiced concerns that more people would be forced into a higher income tax bracket in the November Budget.

“I am quite worried about the Budget," he said. "The government wants to raise £30 to £50 billion in tax; it’s going to come from the ’squeezed middle’.” 

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Heapy added: “I think there are a lot of things to be worried about. The increases in National Insurance cost us [Jet2] £25 million. Future rises [in taxes] will impact us again.

“I think we will see more people being dragged into a higher rate of tax bracket. The number of people in the higher rate has [already] doubled in 12 years.”

He called on the government to treat the industry with respect, citing travel as a force for good and noting the mental health benefits of holidays.

Heapy stressed: “I think the government has to be careful about reverting to the travel industry as a cash cow to fill government coffers.

“We put an enormous amount of money into the UK Treasury. We are a force for good, we employ a lot of people and holidays are great for mental health. I hope the government doesn’t forget that. I hope they treat the industry with the respect it deserves.”

Aside from the uncertainty created by next month’s Budget, Heapy said holidays remained at “the more essential end” of consumer purchases, adding that trading was “pretty robust”.

Sharing the panel, Tui UK & Ireland managing director Neil Swanson also raised fears of further tax rises.

“People need some certainty of no tax rises. Businesses do not need additional costs. We need help to grow,” he said.

On the market, he said the company would “love to see” consumers booking earlier but admitted: “At the moment there is a lot more competition [on price]. People are booking late. People want to travel but they are being pushed to book late, which is not great for anyone.”