Skip to content
Thursday 20 August 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE · FR
MorningWire

European business, markets and politics

FTSE 100
10,721.23
-0.21%
DAX
26,007.67
-0.32%
CAC 40
8,505.90
+0.05%
STOXX 50
6,444.41
0.00%
  • Europe
  • Markets
  • Business
  • Economy
  • Regulation
  • Politics
  • Opinion
More
GermanyFranceEU InstitutionsCompetitionPublic AffairsBankingTechnologyEnergy
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Regulation
  • Politics
  • Opinion
  • DE
Wednesday 27 October 2021 2:11 pm  |  Updated:  Wednesday 27 October 2021 3:30 pm

Budget 2021: Government invests in road and railway, as APD for domestic flights goes down

By: Ilaria Grasso Macola

Add as a preferred source on Google
UK Chancellor Of The Exchequer Presents Autumn Budget And Spending Review
LONDON, ENGLAND - OCTOBER 27: Chancellor Of The Exchequer, Rishi Sunak stands with the Budget Box outside 11 Downing Street, ahead of presenting his Autumn Budget and Spending Review to Parliament, on October 27, 2021 in London, England. In his statement to the House of Commons, Mr Sunak will announce an end to the public sector pay freeze, and an increase to the national minimum wage. (Photo by Leon Neal/Getty Images)

In his Autumn Budget speech, Chancellor Rishi Sunak has set out the funding for the transport sector, focusing on road and rail improvements as well as lowering air passenger duty (APD) taxes on domestic flights.

To level up the country’s “uneven economic geography”, the Chancellor is allocating £130bn for infrastructure investments such as road, railway and communication networks.

When talking about the transport sector, Sunak has said the government will invest £21bn in roads – granting £2.6bn for local road upgrades and £5bn for maintenance.

As for railway, the government’s investments will amount to £46bn and will be finalised in the Integrated Railway Plan, which is due soon and outlines plans for rail projects such as the eastern leg of HS2 and Northern Powerhouse Rail. The Treasury will also grant £5.7bn to city regions for London-style transport networks, while buses, walking and cycling will see more than £5bn of investments.

“The Prime Minister promised an infrastructure revolution, this Budget delivers an infrastructure revolution,” he said.

To boost the aviation sector, the Chancellor that domestic flights will pay lower APD rates. “Right now people pay more for return flights between the four nations of the United Kingdom then they do when flying home from abroad,” Sunak said to explain his decision.

“This will help cut the costs of living, with 9 million passengers seeing their duty cut by half. It will bring people together across the United Kingdom.”

Read more

Andy Burnham should show London he cares by funding this one transport project

Andy Burnham, Mayor of Greater Manchester, standing outside 10 Downing Street in a suit and tie.

The lowering of APD not only will benefit travellers but it will also serve as a boost for regional airports, as they tend to have a greater proportion of domestic passengers.

“Airports are major regional employers, so to help them get through the winter I’m also extending our support for English airports for a further six months,” he said.

While domestic flights will pay less APD, flights longer than 5,500 miles will face a long-haul levy. “Less than 5 per cent of passengers will pay more, but those who fly the furthest will pay more,” Sunak added.

The Chancellor’s decision to increase APD on long-haul flights received negative reviews from airlines and travel associations.

According to Dale Keller, chief executive of the Board of Airline Representative, the increase in ADP is “another missed opportunity” for the country, while the Business Travel Association said the measure “will unfairly impact business travellers at a key point in the recovery of our economy.”

“The British public won’t be fooled into thinking that the Government is investing their APD money to reduce CO2 emissions from air travel,” Keller said.

“Airlines have committed globally to 2050 net-zero targets that require governments to develop pragmatic policies and implement tangible interventions – not resort to tinkering with blunt and regressive taxation that fails to meet the expectations of the public or support the sustainability initiatives of the industry.”

Read more

Virgin Trains gets green light for channel tunnel route

Red Virgin high-speed train on tracks at a station platform, under an arched glass roof, with blurred people.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business
  • Transport & Infrastructure

Related Topics

  • Budget
  • Rishi Sunak

Trending Articles

  • Jobless Banquet: Youth unemployment surge ‘sends Neets to KFC’

  • City law firm sues prominent Emirati business family

  • Amanda Blanc has worked her magic at Aviva

  • As it happened: Miners fuel FTSE 100 recovery; oil jumps as Trump claims Strait of Hormuz

  • House prices in wealthy London boroughs fall by up to £300,000

More from Morning Wire

  • Andy Burnham should show London he cares by funding this one transport project

    Opinion
    Andy Burnham, Mayor of Greater Manchester, standing outside 10 Downing Street in a suit and tie.
  • Virgin Trains gets green light for channel tunnel route

    Transport & Infrastructure
    Red Virgin high-speed train on tracks at a station platform, under an arched glass roof, with blurred people.
  • Andy Burnham must shake Britain out of ‘analysis paralysis’ and get building

    Opinion
    Andy Burnham speaking at a public event, addressing the audience with a focused expression, highlighting his leadership role.
  • Balfour Beatty ups profit forecasts as it defies construction gloom

    Transport & Infrastructure
    Balfour Beatty construction site showcasing cranes, workers, and building progress against a city skyline backdrop
  • MoN Takanawa: The Museum of Narratives Launches New Season “Sound as Culture” Starting October 1

    Business Wire
  • The Debate: Should Britain set up a No 10 North?

    Opinion
    Andy Burnham supporters rallying with banners and signs at a political event, showcasing enthusiasm and solidarity
  • Ignore Palantir’s political opponents and look at the data: this technology helps patients

    Opinion
    NHS logo on a white surface with visible water droplets, blue and white branding
  • Gatwick expansion green-lit as court throws out activists’ appeal

    Transport & Infrastructure
    20m passengers have flown through Gatwick this year
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • EU Institutions
  • Europe

Business

  • Markets
  • Business
  • Economy
  • Regulation
  • Competition
  • Public Affairs

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook