London Daily

Focus on the big picture.
Monday, Feb 09, 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
China and UK Signal Tentative Reset with Commitment to Steadier, Professionally Managed Relations
UK Confirms Imminent Increase in ETA Fee to £20 as Entry Rules Tighten
UK Signals Possible Seizure of Russia-Linked ‘Shadow Fleet’ Tanker in Escalation of Sanctions Enforcement
Epstein Scandal Piles Unprecedented Pressure on UK Prime Minister Keir Starmer’s Leadership
UK’s ‘Most Romantic Village’ Celebrates Valentine’s Day and Explores the Festival’s Rich History
The Implications of Expanding Voting Rights to Non-EU Foreign Residents in France
Ghislaine Maxwell to Testify Before US Congress on February 9
Al.com Acquired by Crypto.com Founder for $70 Million
Apple iPhone Lockdown Mode blocks FBI data access in journalist device seizure
Belgium: Man Charged with Rape After Faking Payment to Sex Worker
KPMG Urges Auditor to Relay AI Cost Savings
US and Iran to Begin Nuclear Talks in Oman
Winklevoss-Led Gemini to Slash a Quarter of Jobs and Exit European and Australian Markets
Canada Opens First Consulate in Greenland Amid Rising Geopolitical Tensions
China unveils plans for a 'Death Star' capable of launching missile strikes from space
NASA allows astronauts to take smartphones on upcoming missions to capture special moments.
Trump administration to launch TrumpRx.gov for direct drug purchases
Investigation Launched at Winter Olympics Over Ski Jumpers Injecting Hyaluronic Acid
U.S. State Department Issues Urgent Travel Warning for Citizens to Leave Iran Immediately
Wall Street Erases All Gains of 2026; Bitcoin Plummets 14% to $63,000
Epstein Case Documents Reignite Global Scrutiny of Political and Business Elites
Eighty-one-year-old man in the United States fatally shoots Uber driver after scam threat
UK Royal Family Faces Intensifying Strain as Epstein-Linked Revelations Rock the Institution
Political Censorship: French Prosecutors Raid Musk’s X Offices in Paris
AI Invented “Hot Springs” — Tourists Arrived and Were Shocked
Tech Mega-Donors Power Trump-Aligned Fundraising Surge to $429 Million Ahead of 2026 Midterms
UK Pharma Watchdog Rules Sanofi Breached Industry Code With RSV Vaccine Claims Against Pfizer
Melania Documentary Opens Modestly in UK with Mixed Global Box Office Performance
Starmer Arrives in Shanghai to Promote British Trade and Investment
Harry Styles, Anthony Joshua and Premier League Stars Among UK’s Top Taxpayers
New Epstein Files Include Images of Former Prince Andrew Kneeling Over Unidentified Woman
Starmer Urges Former Prince Andrew to Testify Before US Congress About Epstein Ties
Starmer Extends Invitation to Japan’s Prime Minister After Strategic Tokyo Talks
Skupski and Harrison Clinch Australian Open Men’s Doubles Title in Melbourne
DOJ Unveils Millions of Epstein Files, Fueling Global Scrutiny of Elite Networks
France Begins Phasing Out Zoom and Microsoft Teams to Advance Digital Sovereignty
China Lifts Sanctions on British MPs and Peers After Starmer Xi Talks in Beijing
Trump Nominates Kevin Warsh as Fed Chair to Reorient U.S. Monetary Policy Toward Pro-Growth Interest Rates
AstraZeneca Announces £11bn China Investment After Scaling Back UK Expansion Plans
Starmer and Xi Forge Warming UK-China Ties in Beijing Amid Strategic Reset
Tech Market Shifts and AI Investment Surge Drive Global Innovation and Layoffs
Markets Jolt as AI Spending, US Policy Shifts, and Global Security Moves Drive New Volatility
U.S. Signals Potential Decertification of Canadian Aircraft as Bilateral Tensions Escalate
Former South Korean First Lady Kim Keon Hee Sentenced to 20 Months for Bribery
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
China Executes 11 Members of the Ming Clan in Cross-Border Scam Case Linked to Myanmar’s Lawkai
Trump Administration Officials Held Talks With Group Advocating Alberta’s Independence
Starmer Signals UK Push for a More ‘Sophisticated’ Relationship With China in Talks With Xi
Shopping Chatbots Move From Advice to Checkout as Walmart Pushes Faster Than Amazon
Starmer Seeks Economic Gains From China Visit While Navigating US Diplomatic Sensitivities
×