Air Passenger Duty: Regional Airports
The question
To ask the Chancellor of the Exchequer, what recent assessment she has made of the impact of Air Passenger Duty on the growth of regional airports.
Answered by James Murray
Air Passenger Duty (APD) exists to ensure that aviation makes a fair contribution to the public finances. The Government understands that regional airports tend to have a greater proportion of domestic and short-haul international passengers compared to larger airports.
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. In 2023/24, 13m passengers on domestic flights benefited from the creation of the domestic band.
The Government keeps all tax policy under review. The Chancellor makes decisions on tax policy at fiscal events in the context of public finances and any changes will be announced at the Budget.
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