Holiday costs look set to rise for UK travellers. | Majorca Daily Bulletin reporter


Apart from the seven euro ETIAS EU visa coming into force next Spring and talk of frequent flyers being penalised in the UK to help offset emissions and climate change it has now been revealed that should Labour win the election in two weeks time, which is currently looking highly likely, Air Passenger Duty (APD) will be raised which means that travelling by air and therefore holidays to popular destinations like Mallorca will become even more expensive.

Everyone over 16 has to pay APD. If you’re over 16 and have flown on a plane, you will have paid air passenger duty (APD). It is the tax that you have to pay when you travel from most airports in this country and it is actually unique to the UK.
APD rates from 1 April 2024
Domestic £7 £14
Band A (0 to 2,000 miles) £13 £26
Band B (2,001 miles to 5,500 miles) £88 £194
Band C (over 5,500 miles) £92 £202

And, Jonathan Reynolds, the shadow business secretary, has opened the door to an increase in the air passenger levy as well as a potential hike in fuel duty in future. Air Passenger Duty was introduced in 1994 by the then chancellor of the Exchequer, Kenneth Clarke. Clarke regarded it as anomalous that fuel duty was not levied on air transport, but international agreements prevented his levying a duty on aircraft kerosene.

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As an alternative, Clarke introduced Air Passenger Duty, a levy collected by airlines on passengers who start their journeys at UK airports. It was initially set at £5 for European flights and £10 for long-haul flights. Children below one year of age were exempt. When APD was first introduced, the return journey of a UK domestic flight was exempt from APD. However, this was deemed to be inconstant with European Union competition rules. Return flights within the UK have incurred two APD payments since 2001.

The subsequent chancellor, Gordon Brown, introduced a double rate of APD for business-class and first-class passengers. His successor, George Osborne, reduced the duty on the most expensive long-haul bands. Last year, Labour came under fire after calling on ministers to reverse their plans to cut air passenger duty on domestic flights in half, from £13 to £6.50.

The party said the cut was “baffling” and a “failure to spend public money wisely”, despite representing savings for fliers amid the cost of living crisis. All these little extras will only add to the price of a holiday.