Budget 2021: Long haul holidays to get more expensive but Air Passenger Duty is slashed on domestic flights

BRITS going on 'ultra long haul' holidays will pay more for their flights from April 2023.

The hike in Air Passenger Duty (APD) was announced by the Chancellor Rishi Sunak this afternoon, as part of the new budget.

The new APD band will cost £91 in tax for seats in Economy, on flights of over 5,500 miles – a £7 increase.

Announcing the new tax in the House Of Commons, Mr Sunak said: "We’re making changes to reduce carbon emissions from aviation.

"Most emissions come from international rather than domestic aviation, so I’m introducing, from April 2023, a new ultra long haul band in Air Passenger Duty, covering flights of over 5,500 miles, with an economy rate of £91.

"Less than 5% of passengers will pay more; but those who fly furthest will pay the most."

Brits travelling to places including Australia, New Zealand, Hawaii, Argentina, South Africa, the Falkland Islands, Singapore and the Philippines will get stung by the new tax.

The budget was good news for Brits who fly on domestic flights between UK destinations though, with APD cut by 50 per cent on flights between England, Scotland, Wales and Northern Ireland.

The current rate of APD on these flights is £13.

The Chancellor said: "Right now, people pay more for return flights within and between the four nations of the United Kingdom than they do when flying home from abroad.

"Today I can announce that flights between airports in England, Scotland, Wales and Northern Ireland will from April 2023, be subject to a new lower rate of Air Passenger Duty.

🔵Read our Budget 2021 live blog for live updates

"This will help cut the cost of living, with 9 million passengers seeing their duty cut by half.

"It will bring people together across the UK, and because they tend to have a greater proportion of domestic passengers, it’s a boost to regional airports like Aberdeen, Belfast, Inverness and Southampton."

In other reforms, Mr Sunak said a pint of beer will be cut by 3p from tonight under the new system, which is designed to taxation "simpler, fairer and healthier.

Lower strength alcohol, such as some beers, rose wine and fruit cider, will also be taxed less from February 2023, while high strength booze will cost more.

Pubs were handed another major lifeline today as business tax was slashed by 50% for hospitality, retail and leisure firms.

Today, Mr Sunak confirmed that millions of Universal Credit claimants will be able to keep an extra £1,000 a year as he slashed the taper rate by 8%.

In a win for The Sun's Make Universal Credit Work campaign, the Treasury will allow workers to keep more of the money they earn and incentivise people to take on extra work.

The Chancellor also announced £11.5bn to build 180,000 affordable homes with £2bn for 160,000 new homes on brownfield land

Mr Sunak unveiled £3bn for youngsters’ bootcamps and traineeships – plus extra £500m for adults to brush up on maths

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