Ryanair boss Michael O’Leary blasts ‘monumental stupidity from Rachel Reeves’ | Politics | News
Ryanair chief executive Michael O’Leary accused Rachel Reeves of “tremendous stupidity” in a furious attack on the Chancellor. The budget airline boss was asked what he thought of Reeves’ above-inflation hike in Air Passenger Duty (APD).
To talk Sky News he said: “This is another moment of monumental stupidity from Rachel Reeves.” Calling APD “the most aggressive tax,” Mr. O’Leary criticized Reeves for raising taxes “when he was elected to deliver growth.” APD is increasing today, it will rise again on the same date in 2027.
He continued: “Sweden, Slovakia, Albania and regional Italy have all abolished aviation taxes but Rachel Reeves is increasing taxes and I think that unfortunately reflects the same reality of Rachel Reeves talking about growth but having no idea how to make it happen.”
Mr O’Leary questioned why the Chancellor had not abolished APD on regional airports, pointing out they should pay the same level of tax as major London centres.
He expressed his decision even more extravagantly, saying: “Every move he makes harms economic growth and undermines the UK’s recovery. The UK is in recession, not growing, and it is the Chancellor who is reeling from policy missteps.”
APD is a tax paid to HM Revenue and Customs (HMRC) by airline operators on passengers departing from UK airports; Rates vary depending on flight length and travel class.
It applies to passengers aged 16 and over traveling on both domestic and international flights and was first introduced in 1994 to offset the environmental impacts of air travel.
Although airlines are responsible for paying APD, the cost is usually included in ticket prices. Carriers then pass the charge on to HM Revenue and Customs; This means that any increase in APD will generally lead to higher airfares for UK passengers.
