Here’s one to keep an eye on if you fly anywhere with the family. There are reports that HMRC is drawing up plans to slap VAT on airport charges — a move that, if it goes ahead, could push up the cost of flights and land as another stealth blow to family holidays.
Before anyone panics, an important caveat: this is being reported as a draft plan being worked up inside HMRC, not confirmed government policy. So treat it as “one to watch” rather than a done deal.
What’s reportedly being planned
According to reports, officials are working on proposals to apply the standard 20% rate of VAT to airport charges — the fees airports levy on airlines. The figure being attached to it is around £1bn in added costs to airlines, and the concern is that airlines would simply pass that cost straight on to passengers through higher fares.
To give a sense of the sums involved, the reporting points to the revenue airports already pull in from passenger charges: Heathrow generated £1.13bn from passenger charges last year, Gatwick reported £607m, and Manchester Airports Group — which owns Manchester and Stansted — recorded £470m. Factor in the smaller airports and the potential VAT take could reportedly top £1.5bn, although it’s not yet clear whether the tax would apply to both outbound and inbound legs.
Why the timing stings
One industry insider quoted in the reporting described the plan as a stealth tax on families at a time when many are already struggling to afford a holiday. That criticism bites partly because it sits awkwardly next to other government moves — including a temporary VAT cut to 5% on certain children’s meals, family attraction tickets and days out, running from 25 June to 1 September 2026 under the “Great British Summer Savings” banner. Cutting VAT on days out with one hand while reportedly drawing up a VAT raid on flying with the other is the kind of contrast that gets noticed.
What it means for you
If you’re a driver who also takes the family abroad, or you do airport runs and keep half an eye on travel costs, this is worth tracking. For now, nothing has changed and no new charge has been confirmed. But if these proposals firm up, higher fares could follow. We’ll keep an eye on it and update if it moves from “draft plan” to actual policy.
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