Osborne Urged To Scrap Flying Tax To Help Save UK Economy

12 March 2012 09:30am - Which Way to Pay

    



Osborne Urged To Scrap Flying Tax To Help Save UK Economy

The bosses of four major airlines have today said that Chancellor George Osborne should scrap air passenger duty (APD) to save the UK’s economic recovery. The chiefs of BA, Virgin, easyjet and Ryanair have all called on Mr Osborne “to suspend the April 1st rises in air passenger duty, and those planned up to 2016, while the Treasury commissions an independent study of the economic effects of this job-destroying tax.”

The reasoning behind their call to get rid of air passenger duty is as follows -  “These endless cumulative increases in APD are pricing families out of flying – both from and to the UK. That means fewer visitors to the UK, which destroyed in our tourism, aviation and hospitality industries and chokes off opportunities for young people at a time of exceptional youth unemployment.”

The World Travel and Tourism Council (WTTC) have today released the results of research on the impact of APD. The research, conducted by Oxford Economics, suggests removing APD could add £4.2 billion to the economy over 12 months and create up to 91,000 jobs. ADP on UK flights is set to rise by more than double the rate of inflation from April, increasing by an average 8%. This study concludes that abolishing APD would boost the aviation and tourism sectors by between £1.8 billion and £2.9 billion over the next year. The WTTC report also said that lower-priced airline tickets would also boost consumer spending.

WTTC president David Scowsill said, “ADP is a completely disproportionate tax on people’s holidays and is hitting business travel hard. When the economy needs help, it is economically illogical to continue with a tax that costs the country some 91,000 jobs and as much as £4.2 billion. He added, “Travel and tourism grew by 4.1% in the UK last year but is forecast to slow to 1.3% in 2012. This slowdown is partly due to the impact of ADP, which is dampening demand.”

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Related Links :
HM Revenue & Customs - Air Passenger Duty
WTTC - Economic Impact 2012
Economic Calendar - For scheduled economic events
Latest News - For regular news updates

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