Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact on the economy in Northern Ireland of increasing air passenger duty.

The government is committed to securing the long-term future of the aviation sector in the UK and recognises the benefits of the connectivity it creates between the UK and the rest of the world.

Following previous increases to Air Passenger Duty (APD) rates to account for below inflation rates, the government will uprate APD rates in line with RPI from 1 April 2027 and rounded to the nearest penny. This constitutes a real terms freeze.

In 2012, the UK government devolved the power to set direct long-haul APD rates to the Northern Ireland Executive, and the Executive subsequently set these at zero. The UK government continues to set APD rates for short-haul international and domestic flights from Northern Ireland.

Reforms to APD took effect in April 2023, including the introduction of a new band for domestic flights, initially set at half the rate for short-haul international flights. The domestic rate applies to all flights between airports in England, Scotland, Wales, and Northern Ireland and is currently set at £7 for economy passengers until 31 March 2026.