Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will publish an update on the progress of the technical working group on Air Passenger Duty in Northern Ireland.

The Government established a technical working group to explore the operational and legal challenges to changing APD in Northern Ireland at Budget 2018. Members included representatives from industry, experts, and civil servants from both the UK Government and Northern Ireland.

Since the technical working group was established, the UK Government published a consultation on aviation tax reform in 2021, to consider how APD on a UK-wide basis could better support Union connectivity and the Government’s environmental objectives. As part of this process, the Government engaged with the Northern Ireland Executive and other stakeholders such as Belfast International Airport and Tourism Northern Ireland. Their views were considered alongside the consultation responses.

At Autumn Budget 2021, the Government published the summary of responses to the consultation and announced that, from April 2023, it would introduce a new reduced domestic band of APD set at £6.50 for economy passengers. The new domestic band will cover flights between Northern Ireland, England, Scotland, and Wales, in order to support connectivity across the UK. As a result, around 9 million passengers will pay less APD in 2023/24.

A new ultra long-haul band, will also be introduced to ensure that those who fly furthest, and have the greatest environmental impact, will pay the most.