Yesterday was Budget day in the United Kingdom – where the Chancellor of the Exchequer George Osborne sets out his spending and taxation plans.
There’s plenty of coverage on all the usual news outlets, as well as the Budget from the UK.gov site.
As well as a sugary drinks tax that’s coming – Air Passenger Duty rises (based on the UK Retail Price Index) were buried in the Budget 2016 document stating:
“Air Passenger Duty (APD) rates – As announced at Budget 2015, all APD rates will increase by RPI from 1 April 2016. All APD rates will increase by RPI from 1 April 2017. (Finance Bill 2016 and Finance Bill 2017)”
What do these rates look like? This UK Government document might make your head spin, but buried deep in are the new numbers.
Shorthaul APD (sub 2000 mile) flights remain constant at £13 in Economy, £26 in Business, and £78 if you’ve got a sub-19 seater private jet.
Meanwhile, long haul flights (greater than 2000 miles), will take another hit, with increases of
- £2 in Economy
- £4 in Business/First
- £12 if you’re in your private jet with less than 19 seats.
The standard APD rates also apply for any seat over 40″ seat pitch – so for single class business flights, the APD applies.
However, the APD picture is going to get a lot more confusing.
Already, Air Passenger Duty in Northern Ireland is a “devolved matter”, allowing the Northern Ireland executive to set its own rates,
Meanwhile, Scotland is in the process of having its own APD powers given to it, with plans to slash the amount the will collect by 50% of the figure imposed by Westminster.
It’s going to make travelling to and from the United Kingdom a bit more confusing in terms of costs.
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