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Treasury takes APD revenue

Government
TTG Staff
4 July 2018

Aviation minister Baroness Sugg has admitted that money raised from Air Passenger Duty (APD) goes “directly” to the government’s main bank account.

Sugg served as parliamentary under-secretary for aviation from October 2017 to April 2019

The tax was originally billed as an environmental tax when it was launched in 1994. But the government has never confirmed whether the money raised, around £3 billion per year, has been spent on “green” projects.


When pressed by TTG at the Abta Travel Matters conference, Sugg admitted: “It goes directly to the Treasury, the funds raised from APD, and then contributes to the spending the Treasury does. It’s not specifically allocated. It does contribute to the wider tax revenue of the government and any reduction would obviously have to be made up for elsewhere.”