Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential impact of removing VAT exemptions for private (a) first-class and (b) business-class flights on Aviation Industry’s Carbon Footprint.

The principal tax on the aviation sector is Air Passenger Duty (APD), which is expected to raise £4.7 billion in 2025-26. APD aims to ensure that airlines make a fair contribution to the public finances.

The Government has put in place a wide range of measures to support the decarbonisation of the aviation sector, including the Emissions Trading Scheme (ETS), support for sustainable aviation fuel (SAF), and development of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) through the International Civil Aviation Organization.