APD implications of new UK Government

ABTA is putting together a report on the likely impact of the new Tory-Lib Dem Coalition, which took power last night.

Head of public affairs Luke Pollard said it was waiting for the full details of the new coalition deal but has already recognised some key implication for the travel industry.

“It’s safe to assume that a third runway at London Heathrow will be not high on the new Government’s priority,” he said.

“With regards to Air Passenger Duty, the two parties have two different policies. Both parties want a per-plane tax, while the Lib Dems also want the tax to be hiked and don’t believe that passengers pay enough.

“Much will depend on who is in the Treasury and the terms of the coalition agreement, which will believe will be unveiled later today.”

The new Prime Minister, David Cameron, moved into Downing Street last night and named Lib Dem leader Nick Clegg as his deputy.

The financial markets reacted cautiously to the new Government.

In early trading, the pound dropped slightly against the dollar and UK share prices fell slightly.

By Bev Fearis