Government is ‘out of touch’ over APD

Fair tax campaigners have accused the Government of being out of touch with public opinion and ignoring thousands of emails from their local constituents.

It says members of the Cabinet have failed to act despite personally receiving more than 12,000 emails and letters expressing serious concerns about the rise in Air Passenger Duty.

Members of the campaign, A Fair Tax on Flying, have written a strongly-worded letter to the Chancellor calling for immediate action.

In the letter, they also cite ‘new robust and credible evidence’ from an independent review of APD undertaken by PwC, which examines the benefits of abolition.

One of the study’s key findings they say is that the abolition of the tax would result in a significant increase in Gross Domestic Product (GDP).

"This would result in a new increase in revenues to the Treasury from other taxes as a result of this economic stimulus – in other words, it would actually pay for itself," said campaigners.

The tax, already the highest in the world, is due to rise again on April 1.

Mark Tanzer, chief executive of ABTA which is part of the campaign group, said the Government risks "choking" the tourism industry.

"New research from the Tourism Alliance has shown that visitors from India have dropped by over 20,000 over the last two years," he said.

"The Prime Minister recently visited the sub-continent to convey the message that Britain welcomes investment in businesses and the tourism industry. However, the increase in APD completely undermines this message."

Darren Caplan, chief executive of the Airport Operators Association, said: "The UK’s eye-wateringly high levels of APD jeopardise economic growth as well as unfairly penalise people travelling by air to, from and within the UK. Everyone knows this, including the 21 Cabinet members who have received over 12,500 emails on the subject, an average of 600 plus emails each.

"With evidence mounting on the damage APD is doing to UK plc and its connectivity with the rest of the world, the Chancellor should now abandon his plans to increase APD yet again this April."

Many European countries, including Belgium, Holland and Denmark, have abandoned their aviation taxes due to the negative effects on their economies.

Support for a Government review of APD has been growing in recent months, with over 100 MPs having now signed a Parliamentary motion urging the Treasury to take action.