The government's £2 billion ‘stealth tax’ on air travellers is illegal and should be scrapped, the High Court was told on Tuesday.

Package holiday firms, represented by the Federation of Tour Operators, have launched a judicial review, claiming that the Air Passenger Duty was illegal under European law.

If successful, the government could be forced to pay refunds to millions of passengers who have already had to pay the levy, reports the Evening Standard.

The legal battle follows the government’s decision to double the tax to £10 for economy and short-haul flights, £40 for economy long-haul and £80 for longer business and first-class trips, on the grounds that air travel emissions are fuelling climate change.