UK flight costs slashed as Rishi Sunak announces cut to air passenger duty

Budget 2021: Rishi Sunak announces Air Passenger Duty cut

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Chancellor Rishi Sunak has announced a lower rate of air passenger duty.

Flights between England, Scotland, Wales and Northern Ireland from April 2023 will be subject to a new lower rate of air passenger duty.

He said: “This will help the cost of living, with nine million passengers seeing their duty cut by half.

“It will bring people together across the UK.

“And because they tend to have a greater proportion of domestic passengers, it’s a boost to regional airports like Aberdeen, Belfast, Inverness and Southampton.”

Air passenger duty is a tax on passenger flights from UK airports.

It was introduced in 1994 to raise money, with the current air passenger duty at £26 for flights up to 2,000 miles.

While this is good news for UK flying, the lower UK flight air passenger duty will be introduced at the same time as a new tax band for “ultra long-haul” flights.

Sunak said: “People pay more for return flights within the UK than when they fly abroad.”

Mark Tanzer, Chief Executive of ABTA – The Travel Association said: “While we support the decision to remove double-taxation on domestic Air Passenger Duty (APD) from April 2023, it is regrettable that this cut will be partially offset with increased rates for long-haul flights.”

Financial support for regional airports was also announced.

The extended support will be for six months.

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