Families face paying more for their big holidays and visits to relatives in far-flung places after Rishi Sunak said taxes would be raised on ultra-long-haul flights.
The Chancellor has increased Air Passenger Duty (APD) for flights to places over 5,500 miles away, which include New Zealand, Australia, South Africa and Japan.
The move is likely to be billed by the Treasury as a demonstration of Mr Sunak's commitment to the green agenda ahead of Cop26 - but it was criticised by pilots' union Balpa. It said it 'flew in the face of the Government’s Global Britain agenda' and that the Budget offered 'no investment in operational resilience... just when UK aviation [was seeing] the light at the end of the tunnel'.
Families face paying more for their big holidays after Rishi Sunak said taxes would be raised on ultra-long-haul flights. Pictured is Heathrow's Terminal 5
Balpa also said it punished families who needed to see relatives.
Mr Sunak also announced a 50 per cent cut in air passenger duty for flights within the UK.
Cutting Air Passenger Duty on domestic flights is an astonishing move that completely flies in the face of the climate emergency
Friends of the Earth
Friends of the Earth’s head of policy, Mike Childs, reacted with dismay.
He said: 'Cutting Air Passenger Duty on domestic flights is an astonishing move that completely flies in the face of the climate emergency. The Chancellor should be making it cheaper for people to travel around the country by train, not carbon-guzzling planes.
'Air Passenger Duty for all flights should have been increased, or even better replaced with a frequent flyers levy, aimed at curbing multiple flights taken by a minority of people each year.'
And SNP Westminster leader Ian Blackford has branded the planned cut to domestic APD a 'disgrace' and called on Mr Sunak to scrap it.
Mr Blackford questioned the wisdom of the Chancellor's move ahead of the crunch Cop26 climate summit in Glasgow.
He told the Commons: 'Chancellor, this is a disgrace and shows quite frankly that this is not a Government that understands the climate challenge that we all face and the Chancellor should withdraw and remove that proposal.'
The Treasury revealed earlier this year it was considering raising taxes on flights to the furthest flung destinations to make the 'polluter pay'.
APD is currently charged in two tax bands - for flights of up to 2,000 miles and for trips of more than 2,000 miles.
People on long-haul flights already pay £80 APD. Domestic flights are charged the short-haul rate of £26 for return travel. While APD is paid by airlines, much of the cost tends to be passed on to travellers.
Mr Sunak said: 'Right now, people pay more for return flights within and between the four nations of the United Kingdom than they do when flying home from abroad.
Mr Sunak announced a 50 per cent cut in air passenger duty for flights within the UK
'We used to have a return-leg exemption for domestic flights but were required to remove it in 2001. But today I can announce that flights between airports in England, Scotland, Wales and Northern Ireland will from April 2023 be subject to a new lower rate of Air Passenger Duty.'
He added: 'We're also making changes to reduce carbon emissions from aviation. Most emissions come from international rather than domestic aviation.
'So I'm introducing, from April 2023, a new ultra long haul band in air passenger duty - covering flights of over 5,500 miles, with an economy rate of £91. Less than five per cent of passengers will pay more, but those who fly furthest will pay the most.'
However, Rajeev Shaunak, partner at accountancy firm network MHA, said in reality passengers are unlikely to even notice the changes.
He explained: 'The reduction in Air Passenger Duty (APD) for domestic flights will mean that from April 2023 such tax on internal flights will be reduced to £6.50 each way from the current £13. The hope is that this will encourage more people to travel by air domestically, clearly of huge importance to Northern Ireland. However, this will be of little importance to Wales with just a few domestic flights remaining following the collapse of Flybe, which was the main operator out of Cardiff airport.
'The Chancellor was also highly animated on the reduced APD on long haul flights of over 5,500 miles rising to £91 from next year’s rate of £84. However, this is barely any change at all and will have zero effect on sales. It will simply result in a £7 surcharge on the most expensive flights
