Chancellor Rachel Reeves has unveiled a significant tax change in the Autumn Budget 2024 that could impact Prince Harry and Meghan Markle's travel arrangements.
The announcement, made just hours ago, introduces a substantial increase in private jet passenger duty.
This new measure is set to affect high-profile individuals who frequently use private aircraft, including the Duke and Duchess of Sussex.
Reeves's budget presentation included a pointed reference to California, which has been interpreted as a thinly veiled allusion to the couple's current residence.
Prince Harry and Meghan Markle could be impacted by Rachel Reeves bombshell
Getty / Reuters
The Chancellor announced a 50 per cent increase in private jet air passenger duties, equivalent to £450 per person.
This substantial hike is part of a broader £40million package of tax measures outlined in the budget.
In contrast, commercial air travel will see a much smaller increase, with short-haul economy flights facing a rise of no more than £2.
Reeves justified the decision by stating that Air Passenger Duty (APD) "has not kept up with inflation in recent years".
Chancellor of the Exchequer Rachel Reeves and Chief Secretary to the Treasury Darren Jones prepare to leave 11 Downing Street before delivering the Budget
Reuters
The move is seen as targeting wealthy individuals and businesses who frequently use private aircraft for travel.
Addressing the chamber, Reeves made a pointed remark, saying: "That is equivalent of £450 per passenger for a private jet to say... California."
This one-word reference to California has been widely interpreted as a dig at Prince Harry and Meghan Markle, who reside in the US state.
The couple have faced criticism in the past for their use of private jets. However, they have also been known to fly commercially on occasion.
Meghan Markle and Prince Harry have been criticised for their use of private jetsPAThe Chancellor's comment could also be seen as a swipe at former Prime Minister Rishi Sunak, who has been reported to frequently use private aircraft for domestic travel.
Private jets have been criticised for their environmental impact. According to a report by Transport & Environment, they are up to 14 times more polluting per passenger than commercial planes and 50 times more polluting than trains.
The new tax measure is part of a broader strategy to address climate concerns. From 2026 to 2027, the Government will increase rates of Air Passenger Duty across all flight classes, with private jets facing the steepest rise.
The Budget 2024 also outlines plans to extend the scope of the APD higher rate to capture all passengers travelling in private jets within the existing APD regime.
Meghan Markle and Prince Harry have been branded 'eco-hypocrites' for taking private jets
PAPrince Harry and Meghan could face increased costs for their UK visits due to this new tax measure. The couple have previously used private jets for travel, including a 12-seater Cessna jet.
However, they have also opted for commercial flights on occasion, such as their recent return to the US from Nigeria.
The new tax could potentially influence their travel choices when visiting the UK. It may encourage them to consider commercial flights more frequently to avoid the hefty £450 per person charge on private jets.
This change could impact the couple's flexibility and privacy during trips to Britain, potentially altering their travel arrangements for future visits.
