March 6th - What Jeremy Hunt's budget has in store for travellers
Simon Calder's Independent Travel Podcast
The Independent
3.6 • 628 Ratings
🗓️ 6 March 2024
⏱️ 8 minutes
🧾️ Download transcript
Summary
In the Budget, Chancellor Jeremy Hunt has said Air Passenger Duty will increase beyond the rate of inflation for travellers who travel in all but the cheapest seats. I’m talking to Paul Charles, former Virgin Atlantic communications director – who doesn’t pull his punches about what it will do for the British travel industry.
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Transcript
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| 0:00.0 | Hello and welcome to today's independent travel podcast with me Simon Calder. |
| 0:07.6 | It's Wednesday the 6th of March Budget Day and the Chancellor has recently sat down |
| 0:13.1 | after coming up with a whole range of initiatives, but one very significant tax increase |
| 0:19.8 | for people who like to be in the more comfortable seats on aircraft. |
| 0:24.6 | We know that the rate of air passenger duty will increase in next year and into 2026, |
| 0:32.6 | in line with the forecast of the retail price index. |
| 0:36.6 | In other words, inflation rounded to the nearest pound, which seems probably okay. |
| 0:44.0 | But crucially, the Chancellor said that rates for those flying premium economy, business, |
| 0:51.0 | first class and for private jet passengers will also increase by the forecast |
| 0:56.8 | rate of inflation and further adjusted for recent high inflation. In other words, there are going to be |
| 1:04.1 | disproportionately high increases for anybody who is not in the most basic of economy classes. |
| 1:11.6 | So, interesting that the Chancellor has decided to have a cut in national insurance rates, |
| 1:18.6 | but that is partly going to be funded by these increases in air passenger duty. |
| 1:23.6 | Maybe it's worth just stepping back to figure out what air passenger duty is. |
| 1:28.4 | It's a very British tax. |
| 1:30.1 | I don't think anybody else has got it. |
| 1:31.8 | Is it a green tax designed to keep us flying less? |
| 1:35.2 | That seems not to be the case. |
| 1:36.9 | The government did everything it could a year ago to encourage flying rather than going by train domestically, |
| 1:43.8 | by halving the rate of air passenger duty, |
| 1:46.0 | is it a revenue-raising device? Well, it certainly is. |
| 1:50.0 | Does it do enough to encourage less damaging behaviour by travellers, |
... |
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