Business leaders call for APD increase to be scrapped
A business leaders’ report claims increased APD could put UK airports and airlines behind their European counterparts.
The British Chambers of Commerce report ‘Flying in the Face of Jobs and Growth’ is calling on the government to scrap the planned tax increase.
It says many European countries, including Belgium, Holland, and Denmark, have abandoned aviation taxes due to the negative effect on their economies.
The report also recommends building additional capacity at airports to ensure business growth and job creation.
It says other European countries, expanded hub airports, such as Amsterdam’s Schiphol, Paris Charles de Gaulle, and Frankfurt International, are increasing the potential for investment and economic competitiveness.
“Identifying the link between air travel and economic performance is easy.
"What’s harder is to convince the government of the need for a clear plan to ensure aviation can play its full part in ensuring economic recovery,” said director general of the BCC, John Longworth.
A Virgin Atlantic spokesman said: "With sky-high taxes and insufficient capacity, it is clear that UK plc is being left behind the world's major economies.
“It is vital that the Government heeds these warnings and takes action to prevent this."
Mike Carrivick, chief executive of the Board of Airline Representatives in the UK, said “The business world is being held back by the lack of capacity to serve new and existing destinations by air, and is justifiably concerned that new and emerging markets will be lost to competing economies.”
According to the BCC report, APD in the UK has increased between 140% and 320% since 2007, with a further increase of 5% expected in April 2012.
It shows that a 5% year-on-year rise in APD could cost the economy at least £70m by 2015, £190m by 2020 and £660m by 2030; and reduce the number of jobs by as much as 25,000 by 2015, 71,000 by 2020 and 250,000 by 2030.
By Diane Evans
Diane
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