Measure

Environmental taxes

The measure

Aggregates Levy:

The rates of Aggregates Levy will increase in line with the Retail Price Index (RPI) to £2.03 per tonne from 1 April 2024.

The rates of Aggregates Levy will increase in line with the Retail Price Index (RPI) to £2.08 per tonne from 1 April 2025.

Air Passenger Duty:

The Air Passenger Duty rates will increase in line with the Retail Price Index (RPI) as forecast at Spring Budget 2023. The new rates are as follows.

  

Bands (approximate distance in miles from the UK)

Reduced rate (lowest class of travel) from 1 April 2024

Standard rate (other than the lowest class of travel) from 1 April 2024

Higher rate from 1 April 2024

Domestic (flights within the UK)

£7

£14

£78

Band A (0 to 2,000 miles)

£13

£26

£78

Band B (2,001 to 5,500 miles)

£88

£194

£581

Band C (over 5,500 miles)

£92

£202

£607

 

Carbon price support rates and Climate Change Levy 

The Carbon Price Support (CPS) rates of Climate Change Levy (CCL) and Fuel Duty will be frozen to maintain a cost of £18 per tonne of carbon dioxide in Great Britain in 2025 to 2026.

CCL will be frozen from 1 April 2025.

Furthermore, a new six-year Climate Change Agreement (CCA) scheme will be introduced. The Department for Energy Security and Net Zero have published a consultation on the detail of the new scheme. Legislation will be prepared during 2024. The new CCA scheme will give access to reduced rates of Climate Change Levy from 1 July 2027 to 31 March 2033 for energy intensive firms that meet energy efficiency or emissions reduction targets agreed with the Environment Agency.

Landfill Tax

From 1 April 2024 the standard and lower rates of Landfill Tax will increase in line with the Retail Price Index (RPI) to £103.70 per tonne, and £3.30 per tonne respectively. 

Plastic Packaging Tax

From 1 April 2024, the rate of Plastic Packaging Tax will increase in line with the Consumer Price Index (CPI) to £217.85 per tonne.

 

Who will be affected?

Businesses who pay the above rates.

 

When will the measure come into effect?

The rates have been set for future years, to provide certainty for taxpayers.