Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of proposed changes to Air Passenger Duty on Inverness Airport.
Answered by James Murray - Chief Secretary to the Treasury
Air Passenger Duty (APD) applies to airlines and is the principal tax on the aviation sector. It is expected to raise £4.2 billion in 2024-25 and it aims to ensure that airlines make a fair contribution to the public finances, particularly given that tickets are VAT free and aviation fuel incurs no duty.
At Autumn Budget 2024, the Government announced Air Passenger Duty (APD) rates for 2026-27, including a partial adjustment to help compensate for two recent years of inflation that was higher than expected. APD rates are set in advance using forecasts of inflation, and so with actual inflation being significantly greater than forecast in 2022 and 2023, APD rates fell in real terms. To help account for this and to ensure that the aviation industry continues to make a fair contribution to the public finances, the Government announced an adjustment to the APD rates for 2026-27.
For economy class passengers, the rate increases are: £1 for domestic flights; £2 for short-haul international flights; and £12 for long-haul and ultra-long-haul international flights.
The Government published a Tax Information and Impact Notice, which outlined the expected impacts of the APD changes. It is available at: https://www.gov.uk/government/publications/changes-to-air-passenger-duty-rates-from-1-april-2026/air-passenger-duty-rates-from-1-april-2026-to-31-march-2027
Passengers carried on flights leaving from airports in the Scottish Highlands and Islands region, such as Sumburgh Airport, are exempt from APD. This exemption is set out at: https://www.gov.uk/guidance/exemptions-from-air-passenger-duty
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of proposed changes to Air Passenger Duty on Edinburgh Airport.
Answered by James Murray - Chief Secretary to the Treasury
Air Passenger Duty (APD) applies to airlines and is the principal tax on the aviation sector. It is expected to raise £4.2 billion in 2024-25 and it aims to ensure that airlines make a fair contribution to the public finances, particularly given that tickets are VAT free and aviation fuel incurs no duty.
At Autumn Budget 2024, the Government announced Air Passenger Duty (APD) rates for 2026-27, including a partial adjustment to help compensate for two recent years of inflation that was higher than expected. APD rates are set in advance using forecasts of inflation, and so with actual inflation being significantly greater than forecast in 2022 and 2023, APD rates fell in real terms. To help account for this and to ensure that the aviation industry continues to make a fair contribution to the public finances, the Government announced an adjustment to the APD rates for 2026-27.
For economy class passengers, the rate increases are: £1 for domestic flights; £2 for short-haul international flights; and £12 for long-haul and ultra-long-haul international flights.
The Government published a Tax Information and Impact Notice, which outlined the expected impacts of the APD changes. It is available at: https://www.gov.uk/government/publications/changes-to-air-passenger-duty-rates-from-1-april-2026/air-passenger-duty-rates-from-1-april-2026-to-31-march-2027
Passengers carried on flights leaving from airports in the Scottish Highlands and Islands region, such as Sumburgh Airport, are exempt from APD. This exemption is set out at: https://www.gov.uk/guidance/exemptions-from-air-passenger-duty
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of proposed changes to Air Passenger Duty on Glasgow Airport.
Answered by James Murray - Chief Secretary to the Treasury
Air Passenger Duty (APD) applies to airlines and is the principal tax on the aviation sector. It is expected to raise £4.2 billion in 2024-25 and it aims to ensure that airlines make a fair contribution to the public finances, particularly given that tickets are VAT free and aviation fuel incurs no duty.
At Autumn Budget 2024, the Government announced Air Passenger Duty (APD) rates for 2026-27, including a partial adjustment to help compensate for two recent years of inflation that was higher than expected. APD rates are set in advance using forecasts of inflation, and so with actual inflation being significantly greater than forecast in 2022 and 2023, APD rates fell in real terms. To help account for this and to ensure that the aviation industry continues to make a fair contribution to the public finances, the Government announced an adjustment to the APD rates for 2026-27.
For economy class passengers, the rate increases are: £1 for domestic flights; £2 for short-haul international flights; and £12 for long-haul and ultra-long-haul international flights.
The Government published a Tax Information and Impact Notice, which outlined the expected impacts of the APD changes. It is available at: https://www.gov.uk/government/publications/changes-to-air-passenger-duty-rates-from-1-april-2026/air-passenger-duty-rates-from-1-april-2026-to-31-march-2027
Passengers carried on flights leaving from airports in the Scottish Highlands and Islands region, such as Sumburgh Airport, are exempt from APD. This exemption is set out at: https://www.gov.uk/guidance/exemptions-from-air-passenger-duty
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of proposed changes to Air Passenger Duty on Dundee Airport.
Answered by James Murray - Chief Secretary to the Treasury
Air Passenger Duty (APD) applies to airlines and is the principal tax on the aviation sector. It is expected to raise £4.2 billion in 2024-25 and it aims to ensure that airlines make a fair contribution to the public finances, particularly given that tickets are VAT free and aviation fuel incurs no duty.
At Autumn Budget 2024, the Government announced Air Passenger Duty (APD) rates for 2026-27, including a partial adjustment to help compensate for two recent years of inflation that was higher than expected. APD rates are set in advance using forecasts of inflation, and so with actual inflation being significantly greater than forecast in 2022 and 2023, APD rates fell in real terms. To help account for this and to ensure that the aviation industry continues to make a fair contribution to the public finances, the Government announced an adjustment to the APD rates for 2026-27.
For economy class passengers, the rate increases are: £1 for domestic flights; £2 for short-haul international flights; and £12 for long-haul and ultra-long-haul international flights.
The Government published a Tax Information and Impact Notice, which outlined the expected impacts of the APD changes. It is available at: https://www.gov.uk/government/publications/changes-to-air-passenger-duty-rates-from-1-april-2026/air-passenger-duty-rates-from-1-april-2026-to-31-march-2027
Passengers carried on flights leaving from airports in the Scottish Highlands and Islands region, such as Sumburgh Airport, are exempt from APD. This exemption is set out at: https://www.gov.uk/guidance/exemptions-from-air-passenger-duty
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of proposed changes to Air Passenger Duty on Aberdeen Airport.
Answered by James Murray - Chief Secretary to the Treasury
Air Passenger Duty (APD) applies to airlines and is the principal tax on the aviation sector. It is expected to raise £4.2 billion in 2024-25 and it aims to ensure that airlines make a fair contribution to the public finances, particularly given that tickets are VAT free and aviation fuel incurs no duty.
At Autumn Budget 2024, the Government announced Air Passenger Duty (APD) rates for 2026-27, including a partial adjustment to help compensate for two recent years of inflation that was higher than expected. APD rates are set in advance using forecasts of inflation, and so with actual inflation being significantly greater than forecast in 2022 and 2023, APD rates fell in real terms. To help account for this and to ensure that the aviation industry continues to make a fair contribution to the public finances, the Government announced an adjustment to the APD rates for 2026-27.
For economy class passengers, the rate increases are: £1 for domestic flights; £2 for short-haul international flights; and £12 for long-haul and ultra-long-haul international flights.
The Government published a Tax Information and Impact Notice, which outlined the expected impacts of the APD changes. It is available at: https://www.gov.uk/government/publications/changes-to-air-passenger-duty-rates-from-1-april-2026/air-passenger-duty-rates-from-1-april-2026-to-31-march-2027
Passengers carried on flights leaving from airports in the Scottish Highlands and Islands region, such as Sumburgh Airport, are exempt from APD. This exemption is set out at: https://www.gov.uk/guidance/exemptions-from-air-passenger-duty
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of proposed changes to Air Passenger Duty on Sumburgh Airport.
Answered by James Murray - Chief Secretary to the Treasury
Air Passenger Duty (APD) applies to airlines and is the principal tax on the aviation sector. It is expected to raise £4.2 billion in 2024-25 and it aims to ensure that airlines make a fair contribution to the public finances, particularly given that tickets are VAT free and aviation fuel incurs no duty.
At Autumn Budget 2024, the Government announced Air Passenger Duty (APD) rates for 2026-27, including a partial adjustment to help compensate for two recent years of inflation that was higher than expected. APD rates are set in advance using forecasts of inflation, and so with actual inflation being significantly greater than forecast in 2022 and 2023, APD rates fell in real terms. To help account for this and to ensure that the aviation industry continues to make a fair contribution to the public finances, the Government announced an adjustment to the APD rates for 2026-27.
For economy class passengers, the rate increases are: £1 for domestic flights; £2 for short-haul international flights; and £12 for long-haul and ultra-long-haul international flights.
The Government published a Tax Information and Impact Notice, which outlined the expected impacts of the APD changes. It is available at: https://www.gov.uk/government/publications/changes-to-air-passenger-duty-rates-from-1-april-2026/air-passenger-duty-rates-from-1-april-2026-to-31-march-2027
Passengers carried on flights leaving from airports in the Scottish Highlands and Islands region, such as Sumburgh Airport, are exempt from APD. This exemption is set out at: https://www.gov.uk/guidance/exemptions-from-air-passenger-duty
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of proposed increases to the Energy Profits Levy on supply chain resilience.
Answered by James Murray - Chief Secretary to the Treasury
At Autumn Budget 2024 the government confirmed that from 1 November 2024, the Energy Profits Levy (EPL) rate would increase by 3 percentage points to 38%, the EPL investment allowance would be abolished and the EPL decarbonisation allowance rate would be adjusted to 66%. The government also confirmed an extension to the period the levy applies from 31 March 2029 until 31 March 2030.
The government has carefully considered the impact of the increase to the EPL. Treasury publishes impacts in summary form for tax measures in tax information and impact notes (TIINs) alongside the Finance Bill. The summary of impacts from these changes to the EPL can be found here: https://www.gov.uk/government/publications/energy-profits-levy-reforms-2024
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to improve access to cash in rural areas.
Answered by Tulip Siddiq
The Government recognises that cash continues to be used by millions of people across the UK, including those in vulnerable groups, and is committed to protecting access to cash for individuals and businesses. The most recent data from the Financial Conduct Authority shows 98 per cent of people in rural areas live within 3 miles of a free-to-use cash access point offering withdrawals.
The Financial Conduct Authority (FCA) has recently assumed regulatory responsibility for access to cash. and its rules went live on 18 September. These rules require the UK’s largest banks and building societies to assess the impact of a closure of a relevant cash withdrawal or deposit facility and put in place a new service if necessary.
Where a consumer, or anyone with a strong connection to a local area, feels access to cash in their community is insufficient, they can submit a request for a cash access assessment. Further information about submitting a cash access request can be found at the following link: https://www.link.co.uk/helping-you-access-cash/request-access-to-cash
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of a ring-fenced, multi-annual improved funding settlement for the agricultural sector.
Answered by Darren Jones - Minister for Intergovernmental Relations
The first phase of the Spending Review 2025, which concluded alongside Autumn Budget 2024, has set budgets for 24-25 and 25-26.
As agricultural policy is devolved, it is for the Devolved Governments to allocate their funding as they choose. This is a key principle of devolution, and we are respecting that by not ringfencing funding for agriculture.
The second phase of Spending Review 2025 which will conclude next year, will set multi-year budgets.
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of extending the /25 Retail, Hospitality and Leisure Business Rates Relief scheme into 2025/26.
Answered by James Murray - Chief Secretary to the Treasury
At Autumn Budget 2024, the government announced that Retail, Hospitality and Leisure (RHL) relief will be extended for 2025-26 at 40% up to a cash cap of £110,000 per business.