Add additional new VAT of 10% to Flights and Holidays, removing the APD (Air Passenger Duty, the tax currently charged per passenger on flights from UK airports) and Aviation Fuel tax, this change would generate more Tax revenue and simpler to collect.

The UK aviation tax regime includes APD (a per-passenger tax with multiple bands and rates) and exemptions on aviation fuel and VAT, creating administrative complexity and loopholes.

A flat 10% VAT on flights and holidays would be easier to administer and understand, reducing compliance costs for airlines and travel companies.

APD currently raises ~£3.4 billion/year 3, but it is narrowly applied and has been criticized for distorting travel behaviour.

VAT on flights and holidays could broaden the tax base, capturing more of the value chain (e.g., package holidays, business travel, luxury services), potentially raising more revenue while being more equitable.

APD distorts route economics: It can make certain routes unviable, especially for regional airports and long-haul destinations, especially as its increase from its starting base of £5 to £20 when introduced in 1994 to now a range of £13 to £224 per person.

Current exemptions are environmentally regressive: Aviation fuel is untaxed, and flights are VAT-exempt, effectively subsidizing air travel over greener alternatives like rail.

Domestic and EEA flights: The UK can legally apply VAT and fuel duty on domestic and EEA-bound flights under current agreements, making this reform feasible without renegotiating global treaties.

VAT is proportional to spending, meaning higher-value holidays and premium travel would contribute more, which could be seen as fairer.