MPs call for inquiry into air passenger duty
Airlines today urged the Government to act on the dire warnings of a cross-party group of MPs that air taxes and a lack of airport capacity are damaging Britain’s economy.
The All Party Parliamentary Group for Aviation said air passenger duty was "a barrier to inward investment" and called on the Government to undertake an economic analysis of the impact of the tax on growth and employment.
The Group, which brings together MPs from across the parties with an interest in aviation but has no formal parliamentary role, also said the UK was being left behind on aviation capacity.
All efforts should be made to ensure the UK retains and grows hub capacity at Heathrow or a new purpose-built hub airport, it said.
Simon Buck, chief executive of the British Air Transport Association, immediately welcomed the report, saying: "Having listened to the evidence from all comers, the MPs have come to the very sound conclusion that high taxes on flying damage inward investment and tourism. It’s time we had some joined up Government thinking on this.
"When will this Government accept that a vigorous aviation industry is essential for the economy and for jobs and that we need to compete with our international rivals for business by growing our trading links with the rest of the world rather than taxing them out of existence or allowing them to wither away through a lack of airport capacity?"
The Group took evidence from 60 organisations, including the Fair Tax on Flying Campaign. Chairman Brian Donohoe MP said:"Our findings advocate a new direction for UK aviation and call upon all those with an involvement in the sector to look again at how aviation can be part of the solution to the UK’s economic problems in a sustainable way.
"In order to achieve the greatest possible economic and social contribution from aviation, we need two things from government: a forward-looking aviation policy that allows for aviation growth; and a new approach to the taxation of aviation.
"Combined, a new approach could not only energise the sector but also provide a firm foundation for the UK’s economic recovery."
He said the Group supported the EU Emissions Trading Scheme but said the Government needed to look again at how it taxed aviation.
Flybe UK managing director Andrew Strong said the report was "a breath of fresh air". He added: "Flybe particularly welcomes the call for government to undertake a detailed economic analysis of the true impact of APD.
"At a time when regional economies in particular need all the help they can get, such a move is crucial starting point. We also applaud their conclusion that, in the development of its Aviation Policy, the needs of regional access to UK hubs are protected. Flybe have served the UK’s regions for three decades and it is heartening to hear a cross-party group like the APG stick up for the millions of passengers who don’t live in London but still need leisure and business access to the rest of the world."
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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