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Air tax strangling economic growth

Air tax strangling economic growth

The Chancellor’s decision to push ahead with the double inflation increase in Air Passenger Duty (APD) in the recent budget has been branded as a reckless brake on the economy by the Board of Airline Representatives in the UK (BAR UK).

The organisation, representing over 80 airlines, is critical that widespread opposition to the exorbitant increases is being ignored by the Chancellor, citing that his Treasury continues to treat air travellers as an easy target.

Mike Carrivick, chief executive of BAR UK said “The number one priority is economic growth. A policy of disproportionately high air travel taxation and a failed aviation policy, provide two glaring examples of how the Government’s aim for economic recovery is being damaged by its own doing. It is a day-dream to assume that air travellers will continue to pay increased air taxes without shrinking the market. Hitting families and businesses with ever-increasing APD rates and restricting much needed capacity increases at key airports is a recipe for failure.”

Mr Carrivick added “To make matters worse, residents and visitors to UK are all affected by yet another aviation tax, under the guise of the EU Emission Trading Scheme (EU ETS). By the time the Chancellor wakes up to the fact that visitor numbers are dropping, other countries will have already benefitted at the expense of the UK.

“We call on the Chancellor to abandon the April APD increase and to reduce the previous rates by the amount of additional income received from the EU ETS.”