Air Passenger Duty
The question
To ask the Chancellor of the Exchequer, if she will make an assessment of the merits of lowering Air Passenger Duty rates.
Answered by James Murray
Air Passenger Duty (APD) applies to airlines and is the principal tax on the aviation sector. It is expected to raise £4.2 billion in 2024-25 and it aims to ensure that airlines make a fair contribution to the public finances, particularly given that tickets are VAT free and aviation fuel incurs no duty.
At Autumn Budget 2024, the Government announced APD rates for 2026-27, including a partial adjustment to help compensate for two recent years of inflation that was higher than expected.
As with all taxes, APD is kept under review and the Chancellor makes decisions on rates at fiscal events in the context of public finances.
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