Chancellor announces surprise boost for air passengers
Chancellor George Osborne today delivered a surprise boost for long-haul travellers, announcing in the Budget that air passenger duty on some long-haul flights would be reduced.
He said he will reform APD so that all long-haul flights are taxed at the same rate as those to the United States.
This will be particularly welcomed by the Caribbean, which has long argued that it’s unfair passengers pay more to fly to their islands than to Hawaii, which is further away.
Delivering his Budget statement in the House of Commons today, Osborne said: "I want to reform the crazy system whereby you pay less to travel to Hawaii than to fly to China or India.
"It hits exports, puts off tourists and creates a great sense of injustice in our Caribbean and southeast Asian communities in the UK.
"From next year, all long-haul flights will carry the same, lower Band B tax rate that you now pay to fly to the United States."
That represents a saving of £27 for passengers buying an economy flight to Australia, or £108 for those flying in premium cabins. For a family of four flying in economy to the Caribbean, the saving will be at least £64.
The new rates will kick on April 1 next year. At the same time, air passenger duty on private jets will be increased to six times the level of rates applying to economy class.
Although reform of APD is being hailed as a victory for the travel industry, the Budget Report made it clear the changes were designed to help British businesses strengthen links with high growth markets and to make the UK a more attractive option for business visitors as well as for tourists.
It said that abolishing the highest rates of APD charged on flights to countries over 4,000 miles from Britain would cut the tax for millions of passengers travelling to China, India, Brazil and "many other emerging markets".
The Chancellor also announced "start up support" for new routes from regional airports, including Liverpool, Leeds and Inverness, but he did not give further details during his speech to the House of Commons.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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