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<p>At Budget, the Government announced that, from April 2023, it will introduce a
new reduced domestic band of Air Passenger Duty (APD), covering flights between England,
Scotland, Wales and Northern Ireland, in order to support connectivity across the
UK. In addition, the Government will introduce a new ultra long-haul band, which will
ensure that those who fly furthest, and have the greatest environmental impact, will
pay the most. Domestic aviation accounted for less than 1% of the UK’s total emissions
in 2019.</p><p> </p><p>Fuel duty is levied on the producers or importers of fuel,
and is generally included in the price most drivers pay for petrol and diesel at the
pump. Therefore, the more fuel that is consumed, the more fuel duty is paid. As noted
in the Autumn Budget and Spending Review 2021 Policy Costings, there are uncertainties
around the behavioural response of the fuel duty freeze.</p><p> </p><p>Transport is
a major cost for families and businesses, and to help with the cost of living, the
government has frozen fuel duty rates, saving a cumulative £1900 for the average UK
car driver, compared to the pre-2010 escalator.</p>
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