Travel hits out at 'unfair' new long-haul APD band

Chancellor Rishi Sunak announced the new band for flights of more than 5,500 miles from April 2023 in his budget on Wednesday (27 October), while also planning to halve APD on domestic return trips by only levying APD on one leg from the same date.

Dale Keller, chief executive of BAR UK (Board of Airline Representatives in the UK), said the new band of APD was “political posturing that undermines the industry’s net-zero commitments”.

“We welcome the solution to a longstanding anomaly where return domestic flights have been taxed higher than international flights to Europe, but why wait until 2023?” asked Keller.

“This eventual correction should not be regarded as a tax cut but simply the government finally doing what is fair and right.

“But the notion that the world’s most heavily taxed long-haul travellers should be expected to subsidise a tax correction for domestic travellers underscores how APD remains not fit for purpose in stimulating a sustainable future for aviation.”

Joanne Dooey, president of the Scottish Passenger Agents’ Association (SPAA), added: “The reduction in domestic APD is to be welcomed, although it won’t come into effect until 2023.

“The increase in long-haul APD, which will come into effect at the same time, won’t help Scotland’s economic recovery. It’s vital that businesses are able to trade globally from their Scottish bases.”

Clive Wratten, chief executive of the Business Travel Association, said the new long-haul band would “unfairly impact business travellers at a key point in the recovery of our economy”.

“The government said this was a Budget bringing in a new wave of optimism and yet business travellers will be heavily taxed to go to crucial destinations such as Singapore, Hong Kong and Australia,” added Wratten.