This measure increases air passenger duty rates in line with RPI, constituting a real terms freeze for the tax year 2021 to 2022. This contributes towards the government’s public finances.

Sunak: ‘APD rates will increase in line with RPI for 2021-22, meaning that short haul rates remain frozen at £13, benefitting 80% of passengers.

‘The rate for long haul economy will increase by £2, and the rates for those travelling in premium economy, business and first class will increase by £4. Those travelling long-haul by private jets will see the rate increase by £13.’

Air passenger duty raised £3.6bn in taxes last year and is expected to raise an additional £2m a year in 2020-21.

In January 2020 the government announced that it would undertake a review of APD ahead of the Budget to ensure that regional connectivity is supported while meeting the UK’s commitment to net zero emissions by 2050.

As a result, the government will consult on aviation tax reform in spring 2020 to review the APD on domestic flights such as reintroducing a return leg exemption, and for increasing the number of international distance bands.