Air Passenger Duty

HM Treasury written question – answered on 9th March 2018.

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Photo of Nigel Evans Nigel Evans Conservative, Ribble Valley

To ask Mr Chancellor of the Exchequer, what assessment his Department has made of the effect of the level of Air Passenger Duty on the UK’s global aviation connectivity (a) nationally and (b) by region compared to other European countries.

Photo of Nigel Evans Nigel Evans Conservative, Ribble Valley

To ask Mr Chancellor of the Exchequer, what assessment his Department has made of the effect of the rate of Air Passenger Duty on trade links after the UK leaves the EU; and if he will make a statement.

Photo of Nigel Evans Nigel Evans Conservative, Ribble Valley

To ask Mr Chancellor of the Exchequer, what assessment his Department has made of the potential effect of Air Passenger Duty rates on the development of new routes from UK airports compared with such development from other EU airports; and if he will make a statement.

Photo of Nigel Evans Nigel Evans Conservative, Ribble Valley

To ask Mr Chancellor of the Exchequer, what assessment he has made of the effect of reducing Air Passenger Duty by 50 per cent on (a) the number of passenger journeys and (b) air routes.

Photo of Robert Jenrick Robert Jenrick The Exchequer Secretary

International treaties ensure that there is no taxation of international aviation fuel, and the Government does not levy VAT on flights. APD ensures the aviation sector contributes its fair share to general taxation. Even at the current rates of APD, UK airports have enjoyed strong passenger growth: exceeding 15% in the previous five years.

The Government has not conducted an assessment of route opportunities under the specific scenarios mentioned. However, the Government is working with the sector to understand better how they believe any reduced APD rates might support new routes and increase connectivity.

The government will also look at the effects of APD and VAT on tourism in Northern Ireland. A call for evidence on this issue was announced at Autumn Budget 2017 and will be published in due course. Respondents in the aviation industry will be able to submit evidence on the wider impacts of APD upon UK tourism.

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