UK chancellor sets ‘spring 2020’ timing for APD reform consultation

Consultation on a review into the UK air passenger duty levels is now expected in “spring 2020” the country’s new chancellor Rishi Sunak disclosed in delivering his first budget. Sunak’s predecessor Sajid Javid had announced plans for the review in January, part of a deal struck with backers of struggling UK regional Flybe to keep the airline flying. Javid though resigned in February, whilst backers of Flybe pulled the plug on the carrier in the early hours of 5 March. The UK government came under fire from some quarters for allowing the carrier to collapse, especially given its ‘levelling up’ pledge to regional connectivity. In delivering the budget, Sunak provided an update of the air passenger duty review - but no firm decision. ”In January 2020 the government announced that it would undertake a review of APD ahead of the budget to ensure that regional connectivity is supported while meeting the UK’s commitment to net zero emissions by 2050,” the government said today. ”As a result, the government will consult on aviation tax reform in spring 2020. The government will consider the case for changing the APD treatment for domestic flights, such as reintroducing a return leg exemption, and for increasing the number of international distance bands.”<br/>