A drop in domestic air passenger duty will be paid for by an increase in the tax imposed on long-haul flights. Plans being considered include only charging air passenger duty one-way for domestic flights, a plan which was previously outlawed when the UK was still in the EU, or introducing a lower band for domestic flights.

A consultation published by the Treasury reads: “Domestic connectivity is a central pillar of the Government’s commitment to supporting the Union and levelling up all parts of the UK.

“Domestic connectivity is vital in fostering integration between all parts of the UK and increasing the social cohesion of the Union. Travel by road or rail is not always practical for certain journeys within the UK, and it is important our domestic air network enables those who live in the UK to connect to areas that are otherwise hard to reach.”

The Treasury said that the proposed changes would reinforce the “polluter pays principle”, by ensuring that those who travel furthest internationally, and consequently have the greatest impact on the environment, incur the most duty.

Aviation levies have been split into two bands: flights to destinations up to 2,000 miles away, and flights travelling more than that distance.
An economy flight from London and Edinburgh with easyJet costs less than £50, for instance. Of this, £13 – more than a quarter of the overall price – is air passenger duty.

Jonathan Hinkles, boss of Loganair, said: “We are heartened to see the consultation around the promised changes to air passenger duty, which cannot come a moment too soon for domestic air travel.”

While the move will be welcomed by some short-haul airlines, it will come as a blow to airlines making bigger profits from long-haul services, The Daily Telegraph reports. 

A spokesman for British Airways owner IAG said: “We have always said that APD should be abolished … this is a tax on global Britain. We will be submitting our views in due course.”