Aviation: Taxation
The question
To ask the Secretary of State for Transport, if he will make an assessment of the potential implications for his policies of the New Economic Foundation's publication entitled Flying Fair: Modernising the air transport tax system, published in June 2025.
Answered by Mike Kane
Aviation taxation is a matter for the Treasury. The Chancellor announced changes to Aviation Passenger Duty (APD) in the October 2024 Budget to ensure the aviation industry continues to contribute its fair share to public finances. The Treasury also recently consulted on their proposal to extend the scope of the higher rate of APD to all private jets.
The rates of APD are the highest in Europe for a tax of its kind, and the revenue raised funds government priorities, including tackling climate change. More widely, the aviation sector is important for the whole of the UK economy in terms of connectivity, direct economic activity, trade, investment and jobs.
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