Tories to reform APD and scrap new runway plans

Monday, 14 Apr, 2010 0
 
A Conservative manifesto pledge to reform Air Passenger Duty will be widely welcomed by the trade.
 
David Cameron’s party says it will "reform Air Passenger Duty to encourage a switch to newer and fuller planes".
 
If the Tories gain power at the May 6 general election, the manifesto also calls for the scrapping of plans for a third runway at Heathrow and second runways at Gatwick and Stansted. 
 
There would be a high speed rail line linking London, Heathrow, Birmingham, Manchester and Leeds with the Continent via the Channel Tunnel with construction to start in five years’ time. 
 
The Conservative manifesto calls for the break up of Heathrow and Stansted owner BAA’s monopoly over London-area airports and to make Heathrow "better not bigger".
 
"We will also provide a high speed rail alternative to thousands of short haul flights at Heathrow, freeing up landing slots at the airport and helping to deal with overcrowding problems," the manifesto says. 
 
The stance comes against Labour’s manifesto which says: "We support a third runway at Heathrow, subject to strict conditions on environmental impact and flight numbers, but we will  not allow additional runways at any other airport in the next Parliament."
 
Labour says it will also encourage more people to switch to rail travel "with an enforceable right to the cheapest fare".
 
EasyJet was amongst the first to support the Tory pledge to reform APD. 
 
Chief executive Andy Harrison said: “We welcome the Conservatives’ promise to reform the UK’s daft air tax.
 
“A tax that forces families to subsidise private jets, cargo planes and 20 million foreign transfer passengers per year is way past its sell-by date.
 
“From an environmental perspective APD gives a perverse incentive – full planes pay the highest tax whilst empty ones pay no tax at all.  We need to make air tax greener and fairer now. It should be reformed from a poll tax into a flight tax that taxes emissions, not families.”
 
APD has been widely criticised for exempting private jets, cargo aircraft and foreign passengers changing planes as well as for under-taxing long-haul passengers.
 
EasyJet and numerous other airlines as well as environmental groups have long called for a complete overhaul of APD.
 
The vast majority of people in the UK support a reform of APD, according to a YouGov survey commissioned by the airline last October in the run up to the last increase in the tax in November 2009.
 
The analysis shows that 80% of the population agree that all flights, including cargo and private jets, should be taxed, while 69% said the tax ought to be designed to tackle climate change.
 
In addition, almost two thirds of those questioned (65%) agreed that APD should also cover foreign transfer passengers.  
 
*See linked story on Liberal Democrat APD stance.
 
by Phil Davies


 

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Phil Davies



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