To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect of a reduction in the Air Passenger Duty for domestic flights on trends in the level of the number of rail passengers.
Answered on
1 March 2022
At Budget, the Government announced that, from April 2023, it will introduce a new reduced domestic band of Air Passenger Duty (APD) set at £6.50 for economy passengers. The new domestic band will cover flights between England, Scotland, Wales and Northern Ireland, in order to support connectivity across the UK. As a result, around 9 million passengers will pay less APD in 2023-24.
The Government will also introduce a new ultra long-haul band, which will ensure that those who fly furthest, and have the greatest environmental impact, will pay the most.
Full details of the consultation on aviation tax reform can be found at: https://www.gov.uk/government/consultations/consultation-on-aviation-tax-reform
More widely, the Government has committed more than £12 billion to maintain rail services since the start of the pandemic and another £5.7 billion will be spent between 2022-23 and 2024-25 to keep essential rail services running as we emerge from the pandemic and to deliver reforms which enable the railway to become a modern and efficient service. This is in addition to over £35 billion of capital investment over the Spending Review period including High Speed Two rail enhancements and vital renewals to boost connectivity across the country.