As the UK braces for the Autumn Budget, new research has revealed that British holidaymakers may be forced to make even tougher financial decisions when it comes to holiday spending. New research, revealed to the Express, shows that the Budget could hit UK travellers hard in 2026. The new figures suggest that UK holidaymakers may be forced to make even more cutbacks on holiday spend if people are left feeling the impact of tax hikes from the Autumn Budget, which will be unveiled on November 26.

Given the current discussion about possible tax rises, 82% said their holiday plans and budget for the year ahead would be impacted if they found themselves worse off after the Budget. Nationally, 26% of respondents said they would look to make cutbacks on aspects of planned 2026 holiday spend, from insurance to clothes and gifts, in order to reduce the overall cost of a holiday.

22% also said they would look to economise on how much they spend on airlines and resorts and hotels for 2026, while 18% would delay booking 2026 holidays until later next year, according to research conducted by AllClear Travel Insurance

In terms of the specific holiday cutbacks they would make, 14% of the respondents said they would opt for the cheapest travel insurance, and this figure was the same for those travelling with pre-existing medical conditions.

In addition to this, 8% of people said they would travel abroad without any cover at all. Other cost-saving measures included: using public transport, not taxis, at the resort (20%), staying at a cheaper resort (24%), and going with hand luggage (15%).

AllClear also revealed that more than seven in 10 UK adults of the nationally representative sample of 2,000 UK holidaymakers surveyed by AllClear said they actively look to buy cheaper travel insurance, even if it means some things aren’t covered when they travel abroad.

One in five people surveyed believe all travel insurance policies are essentially the same, despite large differences in what they cover. A similar proportion say they are happy to compromise on insurance because they are “not travelling far”. Meanwhile, a growing number assume that nothing will go wrong, with rising numbers convinced they won’t fall ill or have an accident abroad.

Garry Nelson, Head of Corporate Affairs at AllClear insurance, told the Express: “It’s startling to see that many people with medical conditions are buying cover based on price.

“Many of the reasons why people are happy to cut corners on travel cover are misplaced. For those people dismissing accidents and illness as something that happens to other people abroad – they could well be the very people that end up getting stuck abroad in hospital, with no insurance to cover the bills.

“Safety first and comprehensive cover need to be the new watchwords so we can properly protect people abroad.”

The Express was also given an advance look at AllClear Travel Insurance’s new annual report.

The findings reveal a worrying increase in medical non-disclosure, misjudged risk-taking and dangerous assumptions about the real cost of falling ill overseas.

AllClear CEO Chris Rolland highlighted a growing disconnect between the booming appetite for foreign travel and the deteriorating understanding of what proper travel insurance actually involves, creating a gap.

While overseas travel has surged back, with 76% of UK adults planning a holiday abroad this summer, the number of people cutting corners on travel insurance has risen sharply.

Rolland warned that this year’s data shows a “perfect storm” of misplaced confidence and rising economic pressure. More than one in five travellers with medical conditions say they will go abroad without any cover at all, a figure he said should “send shockwaves through the industry.”

The report draws on research conducted between 2021 and 2025 and shows that misunderstandings about medical costs abroad have reached a critical level. More than half of UK holidaymakers also believe they could personally fund medical treatment overseas. Hospital bills can be costly, especially in the United States, where they regularly reach six or seven figures.