Air Passenger Duty
The question
To ask the Chancellor of the Exchequer, if her Department will make an assessment of the potential impact of the increase to Air Passenger Duty to the aviation industry.
Answered by Dan Tomlinson
The government is committed to the long-term future of the aviation sector in the UK and recognises the benefits of the connectivity it creates between the UK and the rest of the world.
Following previous changes to Air Passenger Duty (APD) rates to help correct for below-inflation upratings, at Budget 2025, the government announced it will uprate APD rates in line with RPI from 1 April 2027. This constitutes a real terms freeze.
This will continue to make sure that airlines make a fair contribution to the public finances, particularly given that tickets are VAT free, and aviation fuel incurs no duty.
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