Pressure is mounting on chancellor John Healey to bring in a private jet tax on billionaires in a bid to help close the black hole in government finances, reports BritPanorama.
The Independent has seen a cross-party letter from 40 MPs, including a number of Labour MPs, arguing that the tax is fair and closes a loophole that means they are currently exempt.
This push comes amidst growing questions regarding how Mr Healey will secure funding for Andy Burnham’s pledges and address a £5 billion gap in planned defence spending.
A survey by pollsters More in Common of over 3,000 voters indicated that 79 per cent support the proposal to tax private jet use, a stance previously mooted by some backbench Labour MPs and endorsed by the new energy secretary, Miatta Fahnbulleh.
The letter states: “By taxing private jets at the same effective rate as regular flights, and ending the tax exemption on private jet fuel, the exchequer could receive £2.7 billion, which could be used on measures to support people across the country.”
This estimate aligns with a figure from July 2026 provided by the research and innovation foundation, Nesta, which suggested that amount is necessary to eliminate consumer energy debts affecting two million households and alleviate costs borne by other households for unpaid energy bills.
The MPs propose that an increase in Air Passenger Duty (APD) for private jet passengers should match the rate paid by commercial flight passengers, presenting it as a fair method to fund initiatives aimed at reducing the cost of living.
Among the 40 signatories are Labour MPs Abtisam Mohamed, Alex Sobel, Bell Rebeiro-Addy, Cat Smith, Chris Bloore, Chris Hinchcliff, Ian Byrne, Martin Rhodes, Nadia Whittome, Neil Duncan-Jordan, and Sarah Champion.
This initiative arises amid concerns over how Mr Healey will finance Mr Burnham’s decision to eliminate VAT from energy bills and cap bus tickets at £2.
With the Budget set for 28 October, Mr Healey is facing increasing pressure from both ministers and Labour MPs to raise taxes targeted at the wealthy.
Recent measures have seen the cost of borrowing for the UK rise by £12 billion following a recent sale of government debt on the gilt market.
Another tax under consideration includes equalising capital gains tax on assets sold in the UK with income tax, although this has raised warnings from businesses regarding potential adverse effects on investment.
The proposed private jet tax could entail a fuel duty increase, alongside hikes in air passenger duty, primarily impacting billionaires, as private aircraft usage is significantly concentrated among the super-rich.
Authorities believe a private jet tax could generate around £2.7 billion, with fuel duty on private-jet kerosene set at ten times the road-fuel rate contributing an estimated £1.5 billion annually, and a 30-fold increase in air passenger duty accounting for an additional £1.2 billion.
Myles Cummins, aviation campaign manager at climate charity Possible, remarked: “As this polling shows, a majority of Britons support a tax on private jets so that the richest in society can pay their fair share. Private jet passengers are currently paying almost nothing in tax compared to the tax ordinary people pay for their flights, while also producing an astronomical amount of pollution on journeys that only the obscenely wealthy can afford. In the cost-of-living and climate crises, that simply isn’t acceptable. The numbers are clear: people want a private jet tax, so why aren’t we doing something about it?”
