Reform tax plan sparks backlash as airline-linked funding raises red flags

Reform’s Robert Jenrick vowed to cut a tax on flights - after being bankrolled by the owner of an airline which would benefit from his policy.

The party’s Treasury spokesman pledged to cancel air passenger duty on short-haul journeys for adults travelling with children.

But we can reveal he has pocketed £40,000 from a firm with a majority stake in German airline Condor.

This month it started its first UK route, making it liable for the duty Mr Jenrick has pledged to partly scrap.

The revelation will likely prompt conflict of interest allegations against Mr Jenrick, who appeared alongside leader Nigel Farage promoting the party’s new policy late last month.

Asked about our findings, Labour said: “The public will rightly ask – in whose interest is he really acting?”

Air passenger duty, which went up by £2 to £15 for short-haul international economy flights on April 1, is paid for by aircraft operators. Passengers effectively foot the bill though, with the cost commonly passed on via tickets. Mr Jenrick vowed to abolish the so-called “family holiday tax” in an announcement at London’s Heathrow Airport on March 31.

He said: “A Reform government, in our first Budget, will get rid of the family holiday tax. Air passenger duty will be gone for short-haul family trips. That will save a family on average £45 on their flights whether that’s abroad or £48 if they’re going on holiday here in the UK.”

The policy would reportedly apply to short-haul adult economy tickets.

It would cost £166million a year, paid for via cutting spending on “migrant welfare”, mental health benefit claims and foreign aid, the party reportedly said.

However, ex-Tory Mr Jenrick, who defected to Reform earlier this year, made no mention of how his personal donor would benefit from the move.

Mr Jenrick was given £15,000 by Attestor Limited in September, on top of £25,000 in March last year. In 2021, asset manager Attestor purchased a 51% stake in Condor from the German government, which had bailed out the airline.

This month, Condor started flying from Gatwick with three flights a day to Frankfurt in Germany. CEO Peter Gerber said in November: “The launch of this route is another clear signal of our growth in the European market.”

In May 2021, Bloomberg reported Attestor Ltd had acquired a majority stake in Condor, “rescuing a company that’s survived on government support”. Attestor’s website confirms: “We own a majority stake of leisure airline Condor.”

As Housing Secretary in 2020, Mr Jenrick granted planning permission to a property scheme only two weeks before the developer donated to the Tories.

A Labour spokesman said: “This isn’t the first time Robert Jenrick has been under the spotlight for apparent conflicts of interest with big business.”

Reform said: “We want every Mirror reader to be able to take their family on holiday that little bit more easily.”

Attestor declined to comment. Condor did not comment.