Thank you for contacting me about Air Passenger Duty (APD) and about the concept of a frequent flier levy.
The rates for short-haul APD were frozen in 2017 and 2018, which benefitted 80 per cent of passengers, including all British holidaymakers travelling to Europe and most of north Africa. Furthermore, it remains the case that children are exempted from APD providing they are travelling in economy class. Since APD is paid by the airlines but often passed on to customers, I welcome the fact that costs are being kept down for most British travellers.
APD rates increased in line with RPI 2021-22. Short haul rates remain frozen at £13, the rate for long haul economy will increase by £2, and the rates for those travelling in premium economy, business and first class will increase by £4. Those travelling long-haul by private jets will see the rate increase by £13.
Following a detailed consultation, I welcomed the Autumn Budget's announcement of APD reforms that will bolster UK air connectivity through a 50 per cent cut in domestic APD . This will make travel cheaper for around 9 million passengers in 2023-24, and benefit connectivity between Northern Ireland and Great Britain. These APD reforms further align with the UK's environmental objectives by adding a new ultra-long-haul distance band on flights over 5,500 miles or more.
You may be interested to know that there is no tax on commercial aviation fuel or VAT charged for airline tickets. Therefore, APD helps to ensure that the aviation sector plays its part in contributing towards general taxation. Due to these duties, the sector contributes more than £3 billion a year, funding that would otherwise have to be found elsewhere.
Frequent flyers already pay more under the APD system, but I welcome recent consultation on aviation tax reform and look forward to the outcome of this consultation. An additional frequent flier levy would be complex to administer, could be difficult to implement, would pose data processing and privacy concerns, and could prove unfair for those with an essential need to fly frequently. The Government therefore considers it sensible to keep any changes within the context of the existing APD system.
Thank you again for taking the time to contact me.
