Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential impact of the domestic Air Passenger Duty band announced on 22 July 2022 on the number of passengers travelling by train between UK cities.

At Autumn Budget 2021, the Government announced that, from April 2023, it will introduce a new reduced domestic band of Air Passenger Duty (APD) set at £6.50 for economy passengers. The new domestic band will cover flights between England, Scotland, Wales and Northern Ireland, in order to support connectivity across the UK. As a result, around 9 million passengers will pay lower rates of APD in 2023-24.

The Government will also introduce a new ultra long-haul band, which will ensure that those who fly furthest, and have the greatest environmental impact, will pay the most.

The announcement of these reforms to APD followed the 2021 consultation on aviation tax reform, full details of which can be found on GOV.UK: https://www.gov.uk/government/consultations/consultation-on-aviation-tax-reform. On 20 July 2022, the legislation and tax information and impact note (TIIN) was published in draft on GOV.UK: https://www.gov.uk/government/publications/air-passenger-duty-banding-reforms-from-april-2023. The TIIN provides a summary of impacts.

During the COVID-19 pandemic rail ridership fluctuated widely, with the Government providing more than £16 billion of funding for rail passenger services from when it started until now. This is in addition to over £35 billion of capital investment over the Spending Review period including High Speed Two, rail enhancements and vital renewals to boost connectivity across the country – focusing on the Midlands and the North.