Budget airline Ryanair has revealed plans to cut UK winter capacity by 16 per cent from November in a protest against the government's "tourist tax".

The Ireland-based carrier said the decision would result in 2 million fewer passengers travelling through UK airports, with capacity at its London Stansted base due to be reduced by 17 per cent. Ryanair plans to relocate London-based aircraft to other European countries where tourism taxes have been scrapped and passenger charges reduced. Flights to other UK bases will also be cut.

"Sadly UK traffic and tourism continues to collapse while Ryanair continues to grow rapidly in those countries which welcome tourists instead of taxing them," said chief executive Michael O'Leary. "Independent capacity analysis shows that growth has returned to the Belgian, Dutch and Spanish markets after their governments scrapped tourist taxes and/or reduced airport charges, in some cases to zero, in order to stimulate tourism and jobs."