Reeves increases Air Passenger Duty in Budget announcement

Air passengers are set to face an increase in flight taxes, as Chancellor Rachel Reeves announced a rise in air passenger duty (APD) during today's Budget.

Private jet on the runway with the stair down

Air passengers are set to face an increase in flight taxes, as Chancellor Rachel Reeves announced a rise in air passenger duty (APD) during today’s Budget. For economy-class passengers on short-haul flights, the cost will increase by up to £2.

In a more significant change, users of private jets will see a 50% hike in APD. “I am taking a different approach when it comes to private jets, increasing the rate of air passenger duty by a further 50%,” Reeves stated.

APD rates are determined by flight length and cabin class. For economy travellers, the current rates are £7 for domestic flights, £13 for short-haul flights, and between £88 and £92 for long-haul flights. Premium cabin passengers face higher charges: £14 for domestic, £26 for short-haul, and between £194 and £202 for long-haul flights.

For private jet users, the existing APD is £78 for domestic or short-haul flights and between £581 and £607 for long-haul journeys.

Reeves humorously noted that Tory leader Rishi Sunak might have perked up at the mention of APD. She explained in the Commons: “Air passenger duty has not kept up with inflation in recent years, so we are introducing an adjustment, meaning an increase of no more than £2 for an economy-class short-haul flight. But I am taking a different approach when it comes to private jets, increasing the rate of air passenger duty by a further 50%. That is equivalent to £450 per passenger for a private jet to, say, California.”

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