Keeping up the APD pressure

Stephen D’Alfonso, ABTA’s senior research and public affairs manager, says it’s not time to give up the fight over Air Passenger Duty.

"The recent Government announcement that it would not be undertaking a review of APD is extremely disappointing, but not unexpected. The Government has been stalling on the issue for some time, and has finally come out with a clear position on the subject of the economic damage of APD – in a nutshell: ‘we don’t care’. The announcement has proven beyond all doubt that the Treasury is more interested in a quick pound than the genuine economic growth and sustainable development that reform would bring not only in aviation and tourism, but across all industries in the UK.

With this latest example of the Government turning a blind eye to the negative impact of APD, what next for those who recognise the damage that APD is doing to the UK and realise that reform is the only reasonable way forward?

It is extremely important that the Government understands that this will not disappear as an issue anytime soon. The A Fair Tax on Flying campaign has recently launched an initiative to show the economic case for APD reform, and it is vital that businesses that have been negatively affected by the tax make their views known at www.afairtaxonflying.org/business/.

Last year 200,000 people wrote to their MPs to show their opposition to the current high levels of APD. So far this year, 400 companies, organisations and business associations have added their support to the campaign from both within and outside the travel industry. Many have voiced concerns about the negative effects APD is having upon their businesses and their ability to trade and grow in these challenging economic times. I would urge as many businesses as possible to get involved; this will make it increasingly difficult for the Government to dismiss what is a very robust case.

Lobbying takes time, it requires commitment, energy, drive and determination. Speaking frankly, not everyone in our industry has the stomach for this fight. There are those who prefer to give up. We must not let these siren voices triumph because those officials in Government who have advised Ministers that the industry won’t be able to sustain such a united, long-term campaign will be right. We need to continue building awareness of this tax, collate evidence of its impacts, and ensure that it remains an issue that political parties feel the need to address as they prepare their 2015 General Election manifestos, a process that has already begun.

Yet, we as a campaign must explore all avenues for change. The Labour Party, for example, has been handed a golden opportunity to take a progressive stance on tax. If they seize the initiative on this issue, and the signs are encouraging, then the opposition can develop their credentials as a party of sensible reform in the run-up to the next election. This is a gift from the Conservatives, whose current stance on APD is harming their image as a party that encourages businesses to grow. The risk for the Conservatives is real – APD could become a political hot-potato that Labour has tackled, but they have not.

Although it might appear that Labour’s stance on APD is thawing, action on APD must be taken now. The longer APD remains at its current high level, the more economic harm it will do; it is crucial that politicians make the decision to reform APD based on the robust economic case that has been set out by the likes of PWC.

The case for APD reform is comprehensive; however, the Government continues to refute the facts. The campaign for fairer APD must not back down and will continue to push for a change that stands to benefit the entire UK economy."