Thank you for contacting me about the costs of rail and air travel.
Train fare revenue is crucial to funding day-to-day railway operations and wider rail investment, which benefits passengers across the country. In recent years, I know that rail operators have been investing in more trains, better stations and faster journeys. Any rise in rail fares helps this progress to be maintained.
As you may know, rail fares will rise in 2022 by 3.8 per cent, below the current retail price inflation of 7.1 per cent. Capping rail fares at 3.8 per cent strikes a fair balance, ensuring that the Government can continue to invest in a more modern, reliable railway, while easing the burden on taxpayers and protecting passengers from the highest retail price inflation in years. Further, the Government will delay fare increases by three months to March 2022, giving passengers more time to purchase cheaper flexible and season tickets at the existing rate.
With regards to air travel, the UK Government will cut Air Passenger Duty (APD) on UK domestic flights by 50 per cent to boost Union connectivity. This will make travel cheaper and more accessible for around nine million passengers in 2023-24. However, it is right that the Government will introduce a new ultra-long-haul band, covering destinations with capitals located more than 5,500 miles from London to align APD more closely with the Government’s environmental objectives.
Frequent flyers already pay more under the APD system. It is my understanding that an additional frequent flier levy would be complex to administer, could be difficult to implement, would pose data processing and privacy concerns, and could prove unfair for those with an essential need to fly frequently.
Thank you again for taking the time to contact me.