Clause 103 - Rates of air passenger duty from 1 April 2022

Part of Finance (No.2) Bill – in a Public Bill Committee at 10:00 am on 27 April 2021.

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Photo of Abena Oppong-Asare Abena Oppong-Asare Shadow Exchequer Secretary (Treasury) 10:00, 27 April 2021

As the Minister said, the clause will increase, from April 2022, the rates of long-haul air passenger duty in line with inflation while leaving the short-haul duty at its current rate.

As we all know, the aviation sector has struggled enormously during the pandemic, as international travel has in effect shut down. The industry is important to the UK economy and supports 250,000 jobs across the country. The sector’s recovery will be prolonged. Any restructuring must be supported with a transitional strategy for workers and our regional economies that capitalises on the opportunities to grow industry into green technology.

We believe that part of any aviation support must include a clear commitment to tackling climate change and leading the industry to use cleaner fuel and other cutting-edge low or zero emission technologies. Government support should be contingent on airlines retiring old and inefficient aircraft, so that they meet the new industry standards in accordance with the framework of the Paris agreement and the UK’s Climate Change Act 2008.

Several smaller airports, including Teesside and Newquay, were forced to shut their doors at the height of the pandemic. This is an uneven playing field between small and large airports, as staff wages and business rates make up a bigger proportion of costs for regional airports. Without further specific support, regional airports may no longer be viable. The sector has made clear its disappointment with the recent Budget, which failed to set out either the support or the vision for future aviation needs. Will the Minister update us on the aviation support package that the Government promised but which has yet to materialise?

Finally, we know that the Government are currently consulting on a new low band for domestic air passenger duty, and we will watch the outcome of that consultation closely. Will the Minister tell us how that will fit in with our environmental commitments?