In the Pre-Budget Announcement this week there was a depressing announcement about Air Passenger Duty. The rates have been increased but it remains a per passenger duty payable by the airline; but passed on to the passenger. There is no duty on empty seats, freight or private jet users. APD is a tax on consumers who can do nothing to increase the efficiency of the planes or the way they are operated. Airlines and airports can do that � but APD creates no incentive for more carbon efficient flying. APD raises revenue and increases the cost of flying – but it does not encourage the airlines to reduce their pollution – the heavy polluters and the more efficient less polluting airlines pass the same duty on to their passengers.
Higher rates of APD will raise revenue for the Treasury, the revenues will not necessarily be used to fund initiatives for adaptation, mitigation or more carbon efficient forms of flight.