Airline operators’ and travel agents’ hopes that the Chancellor would use his Budget to declare a cut in the rate of air passenger duty (APD) have been dashed, with the announcement that for the tax years 2016 to 2017 and 2017 to 2018 the levy will increase in line with the Retail Price Index (RPI), as previously announced
Earlier this week, the Scottish government launched a 12-week consultation on plans to reform and reduce ADP which would see the tax first halved and then eventually abolished, using new devolved powers under the Scotland Bill.
In contrast, APD in the UK will continue to rise in line with inflation. From 1 April 2016 the short haul rates will be £13reduced rate, £26 standard and £78 higher rate. For longer journeys over 2000 miles the rates are £73, £146 and £438.
From 1 April 2017 the short haul rates remain the same, with the equivalent long haul rates increased to £75, £150 and £450.
Osborne also failed to take up the suggestion, heavily promoted by cities such as Manchester and Liverpool, that APD should be one of the taxes devolved to the regions.
Last week, the SNP announced plans in its manifesto for the May Scottish parliament elections to halve the amount of APD charged for departures from Scottish airports.
