However, he added that it was an 'opportunity missed' too, saying: 'With pump prices at their highest ever, meaning the Treasury is wallowing in a £1billion unexpected windfall, it was a time for the Government to have cut fuel duty significantly. This will make a tangible difference to their lives, providing more choice and frequency for consumers, and bringing all parts of the country closer together.'
'For many people and companies wanting to do business in the UK or see family and friends – particularly across Scotland and Northern Ireland – travelling by air remains the only viable option. In response, Tim Aldersdale, chief executive of Airlines UK, said: 'Reducing the rate of domestic Air Passenger Duty will correct an anomaly that has existed for too long and greatly enhance connectivity to and between all the regions of the UK, supporting route viability and enabling businesses and sectors across the economy to access markets, attract inward investment and support our tourism industry. Less than 5 per cent of passengers will pay more, but those who fly furthest will pay the most.'
'So I'm introducing, from April 2023, a new ultra long haul band in air passenger duty - covering flights of over 5,500 miles, with an economy rate of £91. Most emissions come from international rather than domestic aviation. He added: 'We're also making changes to reduce carbon emissions from aviation. But today I can announce that flights between airports in England, Scotland, Wales and Northern Ireland will from April 2023 be subject to a new lower rate of Air Passenger Duty.' 'We used to have a return-leg exemption for domestic flights but were required to remove it in 2001. Mr Sunak said: 'Right now, people pay more for return flights within and between the four nations of the United Kingdom than they do when flying home from abroad. While APD is paid by airlines, much of the cost tends to be passed on to travellers. Domestic flights are charged the short-haul rate of £26 for return travel.
People on long-haul flights already pay £80 APD. The Treasury revealed earlier this year it was considering raising taxes on flights to the furthest flung destinations to make the 'polluter pay'.ĪPD is currently charged in two tax bands - for flights of up to 2,000 miles and for trips of more than 2,000 miles. The move is likely to be billed by the Treasury as a demonstration of Mr Sunak's commitment to the green agenda ahead of next week's Cop26 climate summit in Glasgow.īut Mr Sunak also said flights between airports in England, Scotland, Wales and Northern Ireland will from April 2023 be subject to a new lower APD. The Chancellor has increased Air Passenger Duty (APD) for long-haul flights of over 5,500 miles which will include places such as Australia, South Africa and Japan. Families face paying more for their big holidays after Rishi Sunak said taxes would be raised on long-haul flights.