Air Passenger Duty
The question
To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential merits of adjustments to domestic aviation duty.
Answered by James Murray
Air Passenger Duty (APD) exists to ensure that aviation makes a fair contribution to the public finances and applies to UK-departing flights.
Reforms to APD took effect in April 2023. These included the introduction of the new domestic band for domestic flights, initially set at half the rate for short-haul international flights (except for larger private jets). The domestic band applies to all flights between airports in England, Scotland, Wales and Northern Ireland and for 2024/25 is set at £7 for economy passengers.
These reforms also introduced a new ultra long-haul band covering flights that are greater than 5,500 miles from London. This ensures that those who fly furthest, and have the greatest impact on emissions, incur the greatest duty.
The Government keeps all tax policy under review. The Chancellor makes decisions on tax policy in the round at fiscal events in the context of public finances and any changes will be announced at Budget.
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