Review into air passenger duty 'long overdue ' - Chamber

A government-led review into air passenger duty on domestic flights is “long overdue ”, in light of how the aviation industry has been hampered by the pandemic, Greater Birmingham Chambers of Commerce has said today.

Head of policy at the Chamber, Raj Kandola, made the comments following an announcement by Prime Minister Boris Johnson that a consultation will be launched in the spring to reform duty structures across domestic flights, in an effort to boost transport connectivity across the country.

The consultation will also look to explore new requirements to offset carbon emissions and measures to decarbonise the aviation industry.

A further £20million has also been pledged by the PM to upgrade rail, road, sea and air links.

Mr Kandola (pictured) welcomed the review, and commented that airline operators have long questioned the fairness of duty on domestic flights.

He said: “The review into Air Passenger Duty is long overdue and has becoming even more pressing in light of the devastating impact of Covid-19 on the aviation industry and the associated sectors.

“It 's clear that anchor institutions such as Birmingham Airport have been crying out for sustained financial support in order to get through the next few months and it was disappointing to see the Chancellor made no such reference in the recent Budget.

“Airline operators have long questioned the fairness of the duty on domestic flying, particularly when you compare it to the amount of tax that is paid to travel to the furthest European return destination and this will perhaps give passenger numbers a welcome boost.

“Nevertheless, the review will also need to take into consideration the impact that reforms would have on the UK 's attempts to reach net zero.

“As we know domestic aviation emissions are included in national carbon targets, mandating the use of sustainable aviation fuels is a step in the right direction, but clearly more needs to be done to reach those lofty targets.

“We would urge the Government to work closely with operators and the wider business community to set out a blueprint on how we can achieve those targets whilst also revitalising an aviation industry which is central to the success of the West Midlands and beyond. ”

Read more on the Chamber 's Net Zero and the Business Community briefing paper, click here