Fair tax campaigners find more evidence of APD damage
Campaigners against rising Air Passenger Duty have discovered figures buried in this week’s Budget statement that show just how much the tax is damaging passenger numbers.
It says the small print shows the Government has admitted it will collect nearly £1bn less from APD than first expected over the next five years.
Not only that, projected passenger numbers through UK airports between now and 2016/17 have been revised down by over 10 million.
The Government originally forecast that passenger numbers would reach 628.4 million, but this has now been reduced to 618.3 million.
In the year 2016/17 alone, passenger numbers have been revised down by 3.6 million.
"These recent forecasts are evidence of the growing damage APD is having on passenger demand," said Darren Caplan, chief executive of the Airport Operators Association.
He said although the Government partly blamed the revised figures on lower inflation and weaker GDP forecasts, it’s evident that the fundamental driver is "lower actual and predicted passenger numbers, as a result of having the highest air passenger tax in the world".
He added: "The Government needs to finally undertake an economic impact-assessment to assess the wider effects the UK’s eye-wateringly high levels of APD are having on our economy."
ABTA head of public affairs Luke Pollard said: "If the Treasury is needing to revise down its figures it is only reasonable to ask why.
"The problem is the Treasury is still refusing to commission a proper study into the wider impacts of this tax.
"If the Treasury is serious about creating growth in the economy it has got to review this damaging tax that is putting the brakes on the UK economy and the Treasury’s own tax projections."
Dale Keller, chief executive of the Board of Airline Representatives in the UK (BAR UK), said: "The Chancellor said this week that he wants to reaffirm the message that ‘Britain is open for business’.
"The Government needs to recognise the damaging impact APD is having on attracting tourists and investment, instead they are bringing the shutters down on UK competitiveness."
The industry has joined forces to launch A Fair Tax on Flying (www.afairtaxonflying.org) campaign, which has been urging travellers and businesses to contact MPs about the levels of APD.
Last month, campaigners announced that 100 MPs had backed calls for an assessment by the Treasury on the impact of the rising tax.
At a debate in the House of Commons a motion was passed, unopposed, also supporting a review.
by Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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