Ryanair boss Michael O’Leary has accused Rachel Reeves of being clueless about growing the aviation industry, saying the real benefit would be to cut taxes.

Mr O’Leary said the Chancellor should reverse her Budget hike in air passenger duty (APD) rather than “waffle on” about Heathrow expansion, which would not happen before the 2040s at the earliest.

Passengers travelling in economy on a short-haul flight will see APD rise from £13 to £15.

Speaking at a press conference in London, Mr O’Leary said: “The UK continues to lose out on enormous growth opportunities because you have a Chancellor who hasn’t a clue about how to deliver growth, has had five years to get ready for it, and yet has managed to screw it up in her first budget.”

He added: “Nothing is designed to damage growth faster than increasing taxes on air travel.”

His comments came after Ms Reeves announced earlier that she supports building a third runway at Heathrow, an announcement that was backed by business leaders but drew criticism from environmentalists and those who believe it won’t achieve what it claims.

Mr O’Leary said: “The third runway at Heathrow is a dead cat. If it ever arrives, it will be about 2040, 2045 or 2050, in fact long after I’ve departed from Ryanair. It will not deliver any growth. The thing that will deliver growth is abolishing APD.”

He promised to grow 60 million passengers a year to 90 million the UK which would cost the Government £4 billion and would be “paid back two-fold within 12 months” because of the growth in passengers.”

The Treasury would argue that the Heathrow expansion is about extending the benefits of expansion to the wider economy.

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