The UK’s two largest tour operators have warned that holidays could become more expensive if Rachel Reeves increases taxes in next month’s Budget.

Tui’s UK managing director, Neil Swanson, expressed concerns that holidays could become unaffordable for some if the Chancellor decides to raise taxes, while Jet2 chief executive Steve Heapy voiced fears about the Budget potentially increasing taxes by £50 billion a year and “screwing Middle England”.

Ms Reeves has admitted she is considering potential tax hikes and spending cuts in her November 26 Budget to fill an estimated £50 billion deficit, as suggested by some economists. In her first Budget last October, she announced an additional £40 billion a year in taxes.

Mr Swanson cautioned that travel companies would be compelled to increase holiday prices if business taxes were raised further. He stated: “We won’t be able to absorb the extra costs that come along there, and we’ll need to pass some or all of that on, depending on what actually happens.

Tui’s boss continued: “That’s going to price some people out of the market. You want travel to be for everyone, not for just the people who’ve got the deeper pockets.

“We need the Government to help us drive some of that growth that the economy needs.”

He added: “If you put too much in our way, then that’s going to be really difficult to achieve.”

Jet2’s Mr Heapy stated that taxes were “even higher than when the Conservatives were in power”, with his company taking a £25 million hit from increased employer national insurance contributions and a higher national minimum wage announced at the last Budget.

“The mood music seems to be that tax will go up again,” he commented. “I don’t think it’s sustainable.”

When questioned if tax hikes would lead to an increase in holiday prices, Mr Heapy responded: “Probably, yes, because if the Budget is perceived as not being great, the (value of the UK’s) currency could reduce, and if the currency reduces, import costs will rise.”

Mr Heapy expressed his message to Ms Reeves would be “don’t continue to use Middle England as a cash cow” as he did not believe it was feasible to “tax your way out of an economically tight spot”.

He added: “They keep talking about a growth agenda. Well, let’s see it. I haven’t seen much so far that I think will result in significant growth in the economy, but I remain hopeful.

“I hope the Budget is a true growth agenda Budget.”