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22 November 2017

Disappointing the Chancellor has not gone further on APD

Commenting on the Chancellor’s announcements on Air Passenger Duty, Chief Executive of the AOA Karen Dee said:

“We welcome the Chancellor’s recognition that Air Passenger Duty (APD) is a burden on families and businesses and has taken the decision to freeze it. However, UK APD remains double the next highest rate in the EU so it is disappointing that the Chancellor has not gone further to address the competitive disadvantage this creates for the UK.

“Aviation is crucial to connecting the UK to the existing and emerging markets that will be vital to our post-Brexit future. APD is a “tax on trade” that holds back growth in the UK’s international connectivity and hits people and businesses travelling to enhance our global trading relationships as well as the tourism industry that contributes so much to all UK regions.

“The AOA also believes that any cut in APD anywhere in the UK should be matched by a cut everywhere else. For that reason, the UK Government should commit to match APD to the Scottish Government’s planned Air Departure Tax, regardless of the delayed introduction announced today and should ensure that the planned review of APD in Northern Ireland looks at APD across the whole of the UK.”

Commenting on the announcement of further investment in transport infrastructure, Karen Dee added:

“Investing in transport infrastructure is a powerful way to boost economic growth and productivity.

“Improving the transport links to airports – the UK’s international gateways – to reduce average journey times by just 5% would create an additional £1.9 billion for the UK economy and supporting an additional 32,000 jobs.

“AOA will be working with Government, nationally and locally, to ensure that this is at the forefront of their minds as they invest the funding announced today.”

ENDS