Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential merits of reducing Air Passenger Duty as a way to support the aviation industry following the covid-19 pandemic.

The Government has provided unprecedented support to the aviation and aerospace sectors throughout Covid-19, with over £12 billion made available through loan guarantees, support for exporters, the Bank of England’s Covid Corporate Financing Facility and grants for research and development.

The renewed Airport and Ground Operations Support Scheme (AGOSS) that the Chancellor announced at the Autumn 2021 Budget provides eligible businesses with support for their fixed costs for a further six months, up to the equivalent of their business rates liabilities for the second half of the 2021-22 financial year, subject to certain conditions and a cap per claimant of £4 million.

Ultimately the best way to support aviation and the wider travel sector is through the safe and sustainable recovery of international travel. The success of the UK’s vaccine and booster rollout means that the Government has been able to reduce the number of travel restrictions, ensuring there is a more proportionate system in place for passengers and businesses.

As APD is a per passenger tax, airlines’ liabilities significantly reduced in light of the Covid-19 pandemic, with receipts between 2020-21 down 84% compared to the previous financial year.