Yvette Cooper has scrapped a £10 airport transit charge dubbed “devastating” by Heathrow Airport.
The Home Secretary has rowed back on plans to extend the controversial electronic travel authorisation (ETA) system to passengers travelling through Britain after a backlash from the airline industry.
The ETA system was first introduced under the Conservatives in 2023 and initially required people from seven Middle Eastern countries who were travelling to the UK without a visa to pay a £10 fee.
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She also said that from April 2025, all transit passengers would also have to register and pay the fee just to travel through UK airports.
Her measures were widely criticised as a blow to Britain’s airline sector, with Heathrow warning it could lose 4m passengers as a result.
said it had suffered a 90,000 drop in passenger numbers on routes that were affected by the ETA scheme and described the system as “devastating for our hub competitiveness”.
Following the backlash, the Home Office on Thursday said it would allow an exemption for transiting passengers who only change flights in Britain before flying to a third country.
However, the Home Office said that this exemption will be temporary and will be “kept under review”.
The boss of Heathrow said this decision was “critical” for the aviation industry.
Thomas Woldbye, the airport’s chief executive, said: “The removal of airside transit passengers from the ETA scheme is the right decision and we welcome it.
“This is a critical move to ensure Heathrow and the aviation industry as a whole can continue to deliver for everyone who depends on our world-leading connectivity.
“It shows that the Government is listening to industry concerns and is willing to make the necessary changes to strengthen the UK’s competitiveness and drive economic growth.”
The decision will boost Heathrow and Manchester airports, which are the only UK airports that offer transit facilities.
While making the concession to the industry, Ms Cooper said on Thursday that she would raise the price of the ETA fee as part of a package of measures that will rake in an extra £269m a year from travellers and citizenship applicants.
The cost of the ETA will rise by 60p from £10 to £16. It was not clear when this would take effect. She also announced increases in certificate of sponsorship fees and the cost of naturalisation as a British citizen.
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