MPs vote for study into impact of air tax on UK economy

Wednesday, 05 Nov, 2012 0

MPs have voted for an economic study into the effect of air passenger duty on the UK economy following a debate in the House of Commons led by a group of cross-party backbenchers who have been putting pressure on the Government for a review of the controversial tax.

However, the economic secretary to the treasury, Sajid Javid, said later: "We have no plans at this point for further consultation." He said the revenue raised by the tax made an important contribution "in this time of austerity".

Nevertheless, ABTA chief executive Mark Tanzer said he was pleased with the outcome of yesterday’s debate.

"This is a positive step towards our goal of securing a review into the economic impacts of APD," he said.

"The Treasury now knows such a review has strong support from MPs, the general public and British businesses and we will continue to put the pressure on the Government."

Priti Patel, proposer of the motion and MP for Witham, emphasised the impact on international competitiveness and foreign investment, stating "current APD rates are a barrier to foreign investors who are looking to expand into the UK."

Graham Brady MP noted the impact high levels of APD are having on ordinary families, arguing that "air travel shoe modern world", while Jim Sheriuld not again become a luxury that only the rich can afford. It is not a luxury in thdan highlighted the impact of the tax on tourism, with particular emphasis on Scotland: "By 2016, APD will cost the Scottish economy up to £210 million in lost tourism spend per annum," he said.

The Economic Secretary to the Treasury suggested MPs looked at the UK tax system as a whole when considering international competitiveness.

The Fair Tax on Flying alliance of over 30 airlines, airports, business and travel organisations including ABTA, launched an e-mail campaign earlier this year which resulted in 200,000 members of the public e-mailing their MPs asking them to support an independent report into the impact of APD on the UK economy.

ABTA head of public affairs Luke Pollard said: "Since the launch of the Fair Tax on Flying online campaign at the start of the summer, it has been winning ever more support from MPs. The Treasury now know that not only is APD one of the largest post bag issues of the Parliament thanks to the campaign, but that many MPs also back the call for a review."



 

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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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