Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she plans to reform Air Passenger Duty to prevent passengers travelling in a Premium Economy cabin from paying the same rate as passengers travelling in a First Class and Business Class cabin.

Air Passenger Duty (APD) applies to airlines, not individual passengers, 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. The distance-based band structure ensures that those who travel furthest, and in the greatest comfort, incur a greater tax liability.

There are three rates of duty for each destination band depending on the class of travel. The reduced rate applies to all travel in the lowest class of travel available on the plane for seat pitches less than 1.016 metres. The standard rate applies to travel in any non-economy class of travel or where the seat pitch is more than 1.016 metres (40 inches). This includes premium economy, as well as first class and business class.

When making changes to taxes the Government has to consider a wide range of factors, including administrative burdens and complexity. The Government keeps all taxes under review.