Budget 2024: Meghan Markle and Prince Harry awkwardly hit by huge tax change

Chancellor Rachel Reeves has made a huge announcement on private jet passenger duty - and it will impact the likes of Rishi Sunak and Prince Harry and Meghan Markle

Rachel Reeves has unveiled a raft of changes in the Budget - including one that will impact Prince Harry and Meghan Markle.

The Chancellor announced today that a huge tax has been slapped on private jets, increasing the rate of air passenger duty (APD) by a further 50 percent - that is the equivalent of £450 per passenger. It came as Reeves told the Commons a much smaller rate would impact commercial air travel, of no more than £2.

Addressing the chamber, Reeves said: "APD has not kept up with inflation in recent years, so we are increasing an adjustment, meaning an increase of no more than £2 for a short haul economy flight. But I am taking a different approach when it comes to private jet. Increasing the rate of APD by a further 50%."

She added: "That is equivalent of £450 per passenger for a private jet to say... California." In her one-word dig to US travel, the Chancellor seemingly took a swipe at ex-Prime Minister Rishi Sunak - though the same rate will apply to former royals, Harry and Meghan, when they travel to and from the UK via private jet.

Private planes are up to 14 times more polluting for each passenger than commercial planes and 50 times more polluting than trains, according to a report by Transport & Environment. It was reported last year that Sunak had used jets and helicopters to zip around the UK more than any other recent PM.

In fact, damning analysis - revealed in Freedom of Information requests to the BBC - showed he had taken one flight every eight days on average. Sunak used an aircraft known as 32 Squadron, which operates two Dassault Falcon 900LX jets and a helicopter to transport the PM and other ministers domestically.

Meanwhile, Harry and Meghan have faced criticism in the past for using private jets to travel, having previously opted to fly in a 12-seater Cessna jet. However, they have also been known to fly on commercial flights, as they did when they travelled back to the US in first class from their tour of Nigeria earlier this year.

The Budget 2024 states: "For 2026-27, the government will increase rates of Air Passenger Duty (APD). This equates to £1 more for those taking domestic flights in economy class, £2 more for those flying to short-haul destinations in economy class, £12 for long-haul destinations, and relatively more for premium economy and business class passengers.

"The higher rate, which currently applies to larger private jets, will rise by a further 50% in 2026-27. From2027-28 onwards, all rates will be uprated by forecast RPI and rounded to the nearest penny. The government is also consulting on extending the scope of the APD higher rate to capture all passengers travelling in private jets already within the APD regime."