+ A rise in Air Passenger Duty

How much and when will it happen?

In his budget speech 6 March Chancellor of the Exchequer Jeremy Hunt announced what he termed a “one-off adjustment” to rates of Air Passenger Duty (APD) on non-economy flights, only to account for high inflation in recent years”.

The Government did not specify the amount. APD for passengers in premium cabins on departures from UK airports currently ranges from £13 to £200 based on the distance.

Clive Wratten, CEO of the Business Travel Association (BTA), said the increase in non-economy APD is “disastrous for the economic welfare and wellbeing of British businesses and their employees”.

“Contrary to common misconceptions, business travel is not just for the wealthy. This tax will hinder growth for small and medium enterprises through limiting international collaboration opportunities. It will hit charities, academics and researchers alongside businesses of all sizes combatting rising costs in every area”, he said.

“There is no mechanism for ensuring that the monies from this tax will go into innovation in the airline sector nor into Sustainable Aviation Fuels. This is therefore just another tax on British businesses”.

A Virgin Atlantic spokesperson said: “UK Government has failed to acknowledge that by increasing APD, the highest aviation tax in the world, they are penalising families travelling in premium, as well as business travellers.

“An increase to the standard rate of APD undermines the competitiveness of UK economy, discouraging leisure travellers who have been crucial in aiding the industry’s recovery. UK Government should not underestimate the importance of leisure travel and the adverse impact this will have on hard working Brits, in its rush to raise yet more revenue from the sector”.

Julia Lo Bue-Said, Chief Executive Officer, The Advantage Travel Partnership, said: “We are hugely disappointed that the Chancellor has once again penalised passengers who are choosing to travel in non-economy seats.

“There are many reasons why people choose to book non-economy seats. For example, those who have mobility issues, those who simply need more room and those who need space to work. There is no question that this is a tax on hard working people and business travellers.”

www.gov.uk/government/publications/spring-budget-2024/spring-budget-2024-html

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READERS' COMMENT

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Sally Spring, St Albans

Why the wait for a APD update? They can’t be using it as an election incentive. Or can they?