‘A damaging tax grab by the Treasury’: Airport Operators Association Responds to the Autumn Statement

AOA CEO, Darren Caplan and Chairman, Ed Anderson outside the Treasury – the chart shows that the UK has the highest rates of Air Passenger Duty in Europe (8.5 times at the ‘Standard’, top rate) ahead of the Autumn Statement announcement of a further increase.

In the Autumn Statement (29th November), the Chancellor was right to recognise the importance of aviation to the UK economy and to acknowledge the need to address capacity issues. However, he also announced that Air Passenger Duty (APD) will be increased by double the rate of inflation – more than 10%. This comes on top of APD increases from 140% to 325%, between 2007 and 2010.

The Airport Operators Association (AOA) believes the Government’s decision on APD is an unacceptable tax grab which will damage jobs and growth. On top of this APD increase, passengers will be subject to double taxation when aviation enters the EU Emissions Trading Scheme in January 2012, as they will have to pay a new additional cost.

Airport Operators Association Chief Executive, Darren Caplan, said:

“We welcome the fact that the Chancellor has acknowledged that airport capacity is a vital part of the UK infrastructure, along with roads and rail. We also welcome his acceptance of the fact that the UK needs to maintain its hub airport status, so it does not lose out to overseas competitors.

“However, we now know that the overall Treasury tax take from Air Passenger Duty (APD) will soar next year, as a result of today’s announcement – by 55% between 2010/11 to 2015/16, according to the Office of Budget Responsibility forecasts. At a time when many other European countries are reducing or even scrapping APD – and when the UK already has the highest level of aviation tax anywhere in the world – holidaymakers, business people and the travelling public will face even higher flying costs.

“The Chancellor’s decision is bad for jobs, bad for growth and bad for passengers – the Treasury should listen to the ‘A Fair Tax on Flying’ alliance (of which AOA is a key member) and urgently re-think its plans for this double inflationary increase in the next Budget. The message to George Osborne is clear – give aviation and air travelers a break.

------ Ends------

Note to Editors:
For further information, please contact Luke Law on 07827 931480 or lukelaw@aoa.org.uk

The ‘A Fair Tax on Flying’ alliance

Over 30 leading travel organisations including airlines, airports, trade associations and destinations. The campaign has created a dedicated Facebook page www.facebook.com/afairtaxonflying to raise awareness of the tax and allow consumers to register their views.

About the Airport Operators Association

Who we are: The Airport Operators Association (AOA) is the trade association that represents UK airports.
What we do: Our mission is to see UK airports grow sustainably. We represent the views of UK airports to Government, Parliament and Regulators to secure policy outcomes that help deliver our mission.
Who we represent: 70 UK airports. For more, see www.aoa.org.uk