Rachel Reeves mocks Rishi Sunak while slapping huge tax on private jets

A huge tax has been slapped on private jets by the in the .

While chiding Rishi Sunak over his high-profile use of the emissions heavy form of transport when PM, the Chancellor announced that the rate of air passenger duty (APD) on private jets would be bumped up by 50%. A much smaller rate increase is to be introduced for commercial air travel.

"APD has not kept up with inflation in recent years, so we are increasing an adjustment, meaning an increase of no more than £2 for a short haul economy flight. But I am taking a different approach when it comes to private jets," Reeves told the Commons.

"Increasing the rate of APD by a further 50%, that is equivalent of £450 per passenger for a private jet to say...California." Private planes are up to 14 times more polluting, for each passenger, than commercial planes and 50 times more polluting than trains, according to a report by Transport & Environment.

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It was reported last year that then PM Sunak has used jets and helicopters to zip around the UK more than any other recent Prime Minister. Sunak took one flight every eight days on average, damning analysis showed. The figures, revealed in Freedom of Information requests to the , showed Mr Sunak boarded 23 domestic flights on RAF jets and helicopters in 187 days. The aircraft used was of the RAF division - known as 32 Squadron - which operates two Dassault Falcon 900LX jets and a helicopter to transport the PM and other ministers domestically.

In today's Budget, it states: "For 2026-27, the government will increase rates of Air Passenger Duty (APD). This equates to £1 more for those taking domestic flights in economy class, £2 more for those flying to short-haul destinations in economy class, £12 for long-haul destinations, and relatively more for premium economy and business class passengers.

"The higher rate, which currently applies to larger private jets, will rise by a further 50% in 2026-27. From2027-28 onwards, all rates will be uprated by forecast RPI and rounded to the nearest penny. The government is also consulting on extending the scope of the APD higher rate to capture all passengers travelling in private jets already within the APD regime."

APD is somewhat of a confusing tax. Rather than simply taxing fuel - as happens with all other forms of transport - the commercial aviation industry benefits from a complex rates system that is based on two things:

• the class you travel in
• the final destination on your ticket

Before the Budget, APD ranged from £7 for a domestic flight in economy class to £202 in a premium cabin to a far away destination in Asia or South America, for example. The majority of travellers pay £13 for a flight to Europe or north Africa.

Last week, the Office for Budget Responsibility said: “In 2024-25 we estimate that APD will raise £4.5bn. That represents 0.4 per cent of all receipts and is equivalent to around £150 per household and 0.2 per cent of national income.” Those figures are likely to be a little higher once the rates have increased.

A year and a half ago the Conservative government cut Domestic APD in half - despite protests of environmental campaigners who warned against encouraging very polluting forms of transport when there are low carbon alternatives, such as train and bus travel. Airlines including Ryanair and easyJet pushed hard for the cut. It saw APD fall to £6.50 as of April 1 last year, although this then rose to £7 this year following the government's Spring 2023 budget announcement.

At the same time, the last Conservative Budget set rates for April 2025 to increase by £2 for intercontinental economy passengers as well as premium travellers within Europe.

Ahead of the rise today, those predicting it were split into two broad camps.

Among those who argued it should be kept low were Michael O'Leary, the reliably anti-tax CEO of Ryanair. The budget airline boss argued that any increase in APD would undermine the viability of some UK routes. In response, Ryanair would make cut-backs in terms of capacity.

“If they raise APD again on then there will be a cut in capacity, no question. These routes are not particularly profitable, they barely break even," the budget airline CEO said, the reported. The outspoken aviation chief made his comments after Ryanair slashed 12% of its capacity in Germany in protest against higher taxes.

Zoe Harris, chief customer officer at On the Beach, reacted to the rise announcement today. She told the Mirror: “We’re extremely disappointed with the decision to increase APD in today’s budget. The UK’s Air Passenger Duty is the highest passenger tax levied anywhere in the world, and increasing it again is another blow to millions of holidaymakers, who will now have to fork out more to fly abroad.

“According to our research, after this decision, more than a third of Brits (35%) are worried about being able to afford their holiday and one in ten say the increase means they can now not afford a holiday abroad. Everyone has a right to holiday and at On the Beach, as well as having great deals, we have initiatives available to help Brits afford their holiday. We know many are likely to pay for their next holiday in instalments and with our super-low deposits on ATOL-protected holidays, we can ensure Brits can spread the cost of their jolly to help make it more affordable.”

On the flip side of things, environmentalists concerned by the very polluting nature of air travel have welcomed the move.

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Anna Krajinska, UK Director at Transport & Environment, told the Mirror: "Rumours have been flying that tomorrow in her first Budget, the Chancellor, Rachel Reeves, will raise Air Passenger Duty (APD). Let’s be clear - that would be the right decision. For too long, the aviation industry has been polluting with impunity. They reap the benefits of government investment but cause irreversible damage to the climate in the process.

"Air Passenger Duty is essentially a tax applied to flying. The amount varies quite considerably depending on your class of travel (economy, premium economy, first class) and the distance you are flying (domestic, short haul, long haul, ultra long haul). For an average person, or rather those who aren’t flying via private jet, the current amount charged through APD ranges from £7 for a cheap seat on a domestic flight to £202 for a premium economy cabin (either a premium economy, business class, or first class seat) on the farthest destinations like Argentina or New Zealand."