London Daily

Focus on the big picture.
Monday, Jan 19, 2026

Cost of flights to rise as Rishi Sunak prepares to raise air passenger duty

Cost of flights to rise as Rishi Sunak prepares to raise air passenger duty

Exclusive: chancellor to boost green credentials by hitting environmentally damaging long-haul flights
Travellers to destinations including Australia, South Africa and Japan can expect to pay more to fly, as Rishi Sunak prepares to overhaul air passenger duty in next week’s budget to reflect the environmental damage wrought by long-haul flights.

The chancellor is keen to burnish his green credentials after a week in which he was accused of failing to back Boris Johnson’s net-zero pledges with sufficient resources.

It is understood that he will announce that a reform of the tax, mooted earlier this year, will go ahead, with a higher rate levied on the longest journeys.

Air passenger duty (APD) is paid by airlines, who tend to pass much of the costs on to their customers.

It is currently charged in two bands, to destinations under 2,000 miles and above 2,000 miles, with business class passengers paying more. The maximum levied per passenger is currently due to rise to £554 next April.

In a consultation document published alongside the March budget, the treasury set out several options for reforming APD. Its favoured approach was a new, three-band structure, with destinations more than 6,000 miles away facing the highest charge.

There is also expected to be a new, lower rate for domestic flights. Such a move is likely to be sold as encouraging levelling up and protecting the Union by fostering connectivity between the nations and regions – though it could be controversial where there are viable public transport alternatives such as train routes.

Environmentalists are likely to reject reforms of APD as much too modest to have an effect on curbing the demand for polluting flights.

The New Economics Foundation (NEF) thinktank has called instead for a frequent flyer levy that would see regular air passengers pay more for the second and subsequent flights they take in a year. NEF research shows that 15% of people take 70% of flights.

Ministers published a “jet zero” strategy in the summer aimed at reducing emissions from air transport, but it is widely regarded as a more difficult challenge than cutting pollution from car travel or domestic energy.

The government is keen to demonstrate that it has a coherent plan for hitting its decarbonisation targets, ahead of the critical Cop26 meeting opening next week in Glasgow.

Sunak is expected to present his budget as rebuilding the economy and boosting its resilience after the tough pandemic period – but he is also likely to acknowledge challenging headwinds, including volatile global energy prices and supply shortages.

The chancellor has also made clear in recent weeks that he is concerned about the increasing risk of inflation, which the Bank of England’s chief economist Huw Pill has suggested could top 5% in the coming months.

That could see consumers facing what Labour has called a “cost of living crisis”, with energy bills increasing, national insurance contributions set to rise in April and universal credit cut by £1,000 a year for millions of low-income families.

Treasury sources denied reports of a VAT cut on domestic fuel bills to help families cope with the soaring costs of heating their homes, but the chancellor could opt for more targeted measures to cushion the blow for some households.
Newsletter

Related Articles

0:00
0:00
Close
High-Speed Train Collision in Southern Spain Kills at Least Twenty-One and Injures Scores
Meghan Markle May Return to the U.K. This Summer as Security Review Advances
Trump’s Greenland Tariff Threat Sparks EU Response and Risks Deep Transatlantic Rift
Prince Harry’s High Court Battle With Daily Mail Publisher Begins in London
Trump’s Tariff Escalation Presents Complex Challenges for the UK Economy
UK Prime Minister Starmer Rebukes Trump’s Greenland Tariff Strategy as Transatlantic Tensions Rise
Prince Harry’s Last Press Case in UK Court Signals Potential Turning Point in Media and Royal Relations
OpenAI to Begin Advertising in ChatGPT in Strategic Shift to New Revenue Model
GDP Growth Remains the Most Telling Barometer of Britain’s Economic Health
Prince William and Kate Middleton Stay Away as Prince Harry Visits London Amid Lingering Rift
Britain Braces for Colder Weather and Snow Risk as Temperatures Set to Plunge
Mass Protests Erupt as UK Nears Decision on China’s ‘Mega Embassy’ in London
Prince Harry to Return to UK to Testify in High-Profile Media Trial Against Associated Newspapers
Keir Starmer Rejects Trump’s Greenland Tariff Threat as ‘Completely Wrong’
Trump to hit Europe with 10% tariffs until Greenland deal is agreed
Prince Harry Returns to UK High Court as Final Privacy Trial Against Daily Mail Publisher Begins
Britain Confronts a Billion-Pound Wind Energy Paradox Amid Grid Constraints
The graduate 'jobpocalypse': Entry-level jobs are not shrinking. They are disappearing.
Cybercrime, Inc.: When Crime Becomes an Economy. How the World Accidentally Built a Twenty-Trillion-Dollar Criminal Economy
The Return of the Hands: Why the AI Age Is Rewriting the Meaning of “Real Work”
UK PM Kier Scammer Ridicules Tories With "Kamasutra"
Strategic Restraint, Credible Force, and the Discipline of Power
United Kingdom and Norway Endorse NATO’s ‘Arctic Sentry’ Mission Including Greenland
Woman Claiming to Be Freddie Mercury’s Secret Daughter Dies at Forty-Eight After Rare Cancer Battle
UK Launches First-Ever ‘Town of Culture’ Competition to Celebrate Local Stories and Boost Communities
Planned Sale of Shell and Exxon’s UK Gas Assets to Viaro Energy Collapses Amid Regulatory and Market Hurdles
UK Intensifies Arctic Security Engagement as Trump’s Greenland Rhetoric Fuels Allied Concern
Meghan Markle Could Return to the UK for the First Time in Nearly Four Years If Security Is Secured
Meghan Markle Likely to Return to UK Only if Harry Secures Official Security Cover
UAE Restricts Funding for Emiratis to Study in UK Amid Fears Over Muslim Brotherhood Influence
EU Seeks ‘Farage Clause’ in Brexit Reset Talks to Safeguard Long-Term Agreement Stability
Starmer’s Push to Rally Support for Action Against Elon Musk’s X Faces Setback as Canada Shuns Ban
UK Free School Meals Expansion Faces Political and Budgetary Delays
EU Seeks ‘Farage Clause’ in Brexit Reset Talks With Britain
Germany Hit by Major Airport Strikes Disrupting European Travel
Prince Harry Seeks King Charles’ Support to Open Invictus Games on UK Return
Washington Holds Back as Britain and France Signal Willingness to Deploy Troops in Postwar Ukraine
Elon Musk Accuses UK Government of Suppressing Free Speech as X Faces Potential Ban Over AI-Generated Content
Russia Deploys Hypersonic Missile in Strike on Ukraine
OpenAI and SoftBank Commit One Billion Dollars to Energy and Data Centre Supplier
UK Prime Minister Starmer Reaffirms Support for Danish Sovereignty Over Greenland Amid U.S. Pressure
UK Support Bolsters U.S. Seizure of Russian-Flagged Tanker Marinera in Atlantic Strike on Sanctions Evasion
The Claim That Maduro’s Capture and Trial Violate International Law Is Either Legally Illiterate—or Deliberately Deceptive
UK Data Watchdog Probes Elon Musk’s X Over AI-Generated Grok Images Amid Surge in Non-Consensual Outputs
Prince Harry to Return to UK for Court Hearing Without Plans to Meet King Charles III
UK Confirms Support for US Seizure of Russian-Flagged Oil Tanker in North Atlantic
Béla Tarr, Visionary Hungarian Filmmaker, Dies at Seventy After Long Illness
UK and France Pledge Military Hubs Across Ukraine in Post-Ceasefire Security Plan
Prince Harry Poised to Regain UK Security Cover, Clearing Way for Family Visits
UK Junk Food Advertising Ban Faces Major Loophole Allowing Brand-Only Promotions
×