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‘Frustration and bewilderment’ as government ignores calls to suspend APD

The government has ignored industry calls to suspend Air Passenger Duty (APD) in the Budget.

Chancellor Rishi Sunak made no reference to the tax in his Budget announcement but confirmation that APD will increase in line with the Retail Prices Index (RPI) from April 2022 was buried in Budget documents.

Rates on economy flights of 2,000-plus miles were already due to rise by £2 to £82 from April and by £4 to £180 on premium.

These will increase again from April 2022 to £84 in economy and £185 on premium.

Those travelling long-haul by private jets will see the rate increase by £13.

Short-haul rates of APD, which the government said represented 75% of passengers, remain frozen at about £26 per passenger.

There was no move to remove the double APD charged domestic return flights.

Last year, a cross-party group of MPS and peers joined airlines and airports in demanding a 12-month abolition of APD.

The 29 parliamentarians called for the tax to be scrapped for a year, claiming the country risked losing almost half the air routes that could be otherwise saved, and 8,000 jobs.

Responding to the Budget announcement, Tim Alderslade, chief executive of Airlines UK, said: “The continued absence of the promised Treasury consultation into APD – a full 12 months since its announcement by the chancellor – is a source of much frustration and bewilderment.”

Karen Dee, chief executive of the Airport Operators Association, said the increase in long-haul APD was “a very damaging blow to an industry already on its knees”.


More:Aviation leaders slam lack of acknowledgement in Budget

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