Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential merits of introducing a 12-month waiver on Air Passenger Duty to provide support to the aviation sector, trade and connectivity during the covid-19 outbreak.

The Government recognises the challenging times facing the aviation industry as a result of COVID-19 and firms experiencing difficulties can draw upon the unprecedented package of measures announced by the Chancellor, including schemes to raise capital and support jobs and flexibilities with tax bills. The aerospace sector and its aviation customers are being supported with over £8.5 billion support through the Bank of England’s Covid Corporate Financing Facility, grants for research and development, loan guarantees and support for aerospace exports. The government has also launched a new Global Travel Taskforce to support the travel industry and the safe recovery of international travel.

Airlines’ Air Passenger Duty liabilities will have considerably reduced following the decline in passenger demand caused by COVID-19.

The Government has committed to consult on aviation tax reform and will provide more detail on next steps in due course.