Oral question asked in the House of Lords, by Lord Borrie (Labour). It was answered by Lord Sassoon (Conservative) on Tuesday, 11 January 2011.

Air Passenger Duty

Question: To ask Her Majesty’s Government what is their assessment of the potential effects on United Kingdom competitiveness of the announcement by the Chancellor of the Exchequer in June 2010 forecasting that air passenger duty revenue would increase from the current rate of £1.9 billion to £3.8 billion per annum by 2015–16.

Answer: My Lords, the Office for Budget Responsibility’s November forecast estimates air passenger duty revenue at £3.6 billion in 2015-16. The estimate reflects forecast growth in passenger numbers and the November 2010 rate increases as announced by the previous Government. It also assumes that duty rates are uprated by inflation each year—a standard forecasting convention. However, at the Budget, the Government committed to exploring changes to aviation tax and to consult on any major changes. We are considering evidence from stakeholders, including on the impact on UK competitiveness.

Secondary information