Budget special: Operators tell Osborne he should have done more
If Chancellor George Osborne was expecting gratitude from the travel industry for his decision to delay a planned rise in air passenger duty, he will be sadly disappointed.
Far from congratulating him for using his Budget to announce an APD freeze and a review of the hated tax, industry stalwarts have accused him of reneging on his promise to replace the passenger tax with a per plane duty and of failing to make the tax fairer.
Not everyone was appeased by his protestations that although a per plane tax would be fairer it would be illegal under international law, and some feel that a review of the banding system announced today is long overdue.
Virgin Holidays’ managing director Amanda Wills joined those who accused the Chancellor of not going far enough in his Budget announcement today.
“We welcome the news concerning a freeze on the threatened APD rise, although it feels like a temporary stay of execution rather than a full reprieve, she said.
"This was an opportunity for the Government to make a bold commitment to the UK travel industry and a clear statement of its support for communities and economies which are dependent on tourism. Unfortunately, we have something of a fudge which leaves the possibility of future rises open.
“It is also disappointing that the Government has not acted decisively on the many calls that have been made to review the banding system for travel to overseas destinations.
"The consultation is a positive signal for regions such as the Caribbean which are dependent on tourism for a substantial part of the GDP and employment, but we believe this was an opportunity for a clearer message to be sent. We join our colleagues in the travel industry both here and overseas in urging the Chancellor to work with us and act on this matter urgently and introduce a fairer system.“
By Linsey McNeill
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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