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Family holidays could cost £230 more after Brexit, claims David Cameron David Cameron claims family holidays could cost £230 more after Brexit
(about 1 hour later)
The cost of a family holiday could rise by £230 and new limits on duty free could put an end to “booze cruises” to the continent if Britain votes to leave the EU, David Cameron is to claim.The cost of a family holiday could rise by £230 and new limits on duty free could put an end to “booze cruises” to the continent if Britain votes to leave the EU, David Cameron is to claim.
In the latest warning about the price of Brexit, the prime minister will argue that the cost of holiday spending and accommodation could go up because of the falling pound.In the latest warning about the price of Brexit, the prime minister will argue that the cost of holiday spending and accommodation could go up because of the falling pound.
The leave campaign is likely to level charges of exaggeration and scaremongering at the new Treasury figures, released a day after a warning about job losses, lower wages, higher inflation and falling house prices.The leave campaign is likely to level charges of exaggeration and scaremongering at the new Treasury figures, released a day after a warning about job losses, lower wages, higher inflation and falling house prices.
But Downing Street insists it is setting out the government’s objective viewpoint ahead of the 23 June vote.But Downing Street insists it is setting out the government’s objective viewpoint ahead of the 23 June vote.
In its new analysis, the Treasury claimed holiday prices could go up as soon as this summer because the pound is likely to fall by around 12%, making the cost of accommodation, food and drinks higher for those travelling overseas. It predicted that two years after Britain leaving the EU, the average holiday for four people travelling together for eight nights in Europe would cost £230 more.In its new analysis, the Treasury claimed holiday prices could go up as soon as this summer because the pound is likely to fall by around 12%, making the cost of accommodation, food and drinks higher for those travelling overseas. It predicted that two years after Britain leaving the EU, the average holiday for four people travelling together for eight nights in Europe would cost £230 more.
The government argued that other benefits would be at risk, including the end of roaming charges from 2017, free healthcare within the EU and booze cruises because of potential limits on duty free.The government argued that other benefits would be at risk, including the end of roaming charges from 2017, free healthcare within the EU and booze cruises because of potential limits on duty free.
“All the evidence points to the value of the pound falling after a vote to leave the EU. A weaker pound means people’s hard-earned savings won’t go as far on holidays overseas,” Cameron will warn.“All the evidence points to the value of the pound falling after a vote to leave the EU. A weaker pound means people’s hard-earned savings won’t go as far on holidays overseas,” Cameron will warn.
Related: Cameron warns against 'self-destruct' vote to leave EURelated: Cameron warns against 'self-destruct' vote to leave EU
“The choice facing the British people on 23 June is increasingly clear: the certainty and economic security of remaining in the EU, or a leap in the dark that would raise prices – including the cost of a family holiday.”“The choice facing the British people on 23 June is increasingly clear: the certainty and economic security of remaining in the EU, or a leap in the dark that would raise prices – including the cost of a family holiday.”
His warnings add to a previous ones by airline chief executives, including Carolyn McCall of easyJet and Michael O’Leary of Ryanair, that the price of flights could be affected.His warnings add to a previous ones by airline chief executives, including Carolyn McCall of easyJet and Michael O’Leary of Ryanair, that the price of flights could be affected.
McCall said: “For easyJet and our passengers, membership of the EU has been a good thing. The common aviation area created by the EU allows any European airline to fly anywhere in Europe. This has kept all airlines’ costs low and has enabled low-fare airlines like easyJet to expand.McCall said: “For easyJet and our passengers, membership of the EU has been a good thing. The common aviation area created by the EU allows any European airline to fly anywhere in Europe. This has kept all airlines’ costs low and has enabled low-fare airlines like easyJet to expand.
“If the UK were to vote to leave the EU any new, more restrictive aviation arrangements would add cost and therefore fares would rise. And a weaker pound would mean the cost of a holiday abroad – including food, accommodation and drinks – would be more expensive. That is why we think our customers are better off in Europe.”“If the UK were to vote to leave the EU any new, more restrictive aviation arrangements would add cost and therefore fares would rise. And a weaker pound would mean the cost of a holiday abroad – including food, accommodation and drinks – would be more expensive. That is why we think our customers are better off in Europe.”
Two bosses of mobile phone companies backed the government’s claims that the UK would not necessarily benefit from the end of mobile roaming charges from June 2017 if it left the EU.Two bosses of mobile phone companies backed the government’s claims that the UK would not necessarily benefit from the end of mobile roaming charges from June 2017 if it left the EU.
Related: Brexit could risk tourists' safety and push up flight prices, say top travel figuresRelated: Brexit could risk tourists' safety and push up flight prices, say top travel figures
Gavin Patterson, chief executive of BT Group, which owns EE, said: “Because of the UK’s membership of the EU, BT and EE have been able to offer our customers lower charges, including inclusive roaming plans and data charges that are over 90% lower for Britons travelling on the continent. Voters need to think very carefully before turning their backs on an institution that helps to ensure benefits like that are delivered.”Gavin Patterson, chief executive of BT Group, which owns EE, said: “Because of the UK’s membership of the EU, BT and EE have been able to offer our customers lower charges, including inclusive roaming plans and data charges that are over 90% lower for Britons travelling on the continent. Voters need to think very carefully before turning their backs on an institution that helps to ensure benefits like that are delivered.”
Vittorio Colao, chief executive of the Vodafone Group, said: “The end of roaming charges – which was driven by the EU – and Europe-wide offers from operators like Vodafone – the European leader in 4G – mean that everyone can use their mobiles anywhere in Europe without having to worry about excessive costs.Vittorio Colao, chief executive of the Vodafone Group, said: “The end of roaming charges – which was driven by the EU – and Europe-wide offers from operators like Vodafone – the European leader in 4G – mean that everyone can use their mobiles anywhere in Europe without having to worry about excessive costs.
“Britain will benefit from being part of a borderless European single digital market as it will create new opportunities for economic growth. Consequently, we believe it is better to be a shaper and leader from within, rather than being just a commercial neighbour.”“Britain will benefit from being part of a borderless European single digital market as it will create new opportunities for economic growth. Consequently, we believe it is better to be a shaper and leader from within, rather than being just a commercial neighbour.”