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Ryanair boss Michael O’Leary has warned that the budget airline could cut flights from the UK if Rachel Reeves announces an increase in air passenger duty (APD) in the budget to be announced on November 26.

APD is a tax which applies to flights departing from UK airports, although the cost is usually passed onto passengers in the form of higher fares. The tax is expected to rise on April 1, adding up to £2 to the cost of a short-haul economy flight, the Guardian reports.

O’Leary said if the APD were to increase gain, airlines such as Ryanair would move their operations from some of the UK’s smaller airports to countries with lower business taxes, such as Sweden and Italy.

A Treasury spokesperson told The Guardian: “Unlike other sectors, no VAT applies to plane tickets,

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