ABTA Research highlights MP and consumer concerns about APD as Chancellor announces further increases

Published on : Friday, December 6, 2013

Houses-of-Parliament-WestminsterThe Travel Association unveils new research in response to today’s Autumn Statement, which confirms that Air Passenger Duty (APD) will increase again in April 2014 in line with inflation, meaning that economy class passengers could pay nearly £100 in tax on some flights from the UK.

ABTA research1 reveals that MPs are increasingly concerned about the damaging impact of APD, with half (52%) saying that the tax is putting UK businesses at a disadvantage. The same proportion also believes the tax is damaging the position of the UK as a hub for global air travel. Significantly, Conservative MPs are most likely to believe the tax to be putting UK businesses at a disadvantage, with six in ten (60%) believing this. In the same survey last year 56% of Conservative MPs said this, showing that there is an increasing proportion of the party who are questioning the benefits of the tax.

In a separate consumer survey2, ABTA also found four in ten (41%) consumers believe that APD puts the UK economy at a disadvantage.

Mark Tanzer, Chief Executive ABTA said: “It’s very disappointing that the Chancellor has once again chosen not to conduct a proper review of APD. It’s clear that there is strong support for a review both from within Government and from the public, as well as evidence from Europe that the tax is damaging. Earlier this year the Irish Government abolished its version of APD, joining many other European countries in doing so, as they realised the tax was doing more harm than good to the economy.”

Stephen D’Alfonso, Head of Public Affairs ABTA said: “Whilst the headline news on APD from the Autumn Statement is disappointing, the improving growth forecasts that are putting smiles on the faces of the Treasury team should also re-energise and invigorate the industry, presenting us with an ideal opportunity to renew our calls for a policy shift on aviation taxation. ABTA will continue to make the case for the positive economic contribution the travel industry is making, and the competitive damage APD is doing.

Source:- ABTA

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