Devolution of Air Passenger Duty to London is not the right solution

Responding to the London Finance Commission’s publication of its report Devolution: a capital idea, AOA Public Affairs Manager Henk van Klaveren said:

“It is welcome that more people are recognising the damaging effects of Air Passenger Duty (APD) on economic growth and families as well as the opportunities there are to boost jobs and growth, and help families who are just about managing take a well-deserved family holiday. Devolution of APD is, however, not one of the solutions to that problem.

“In the interests of fairness, it cannot be right that one part of the UK is able to levy a different rate of APD compared to other areas, thus disadvantaging not only our airport members but companies and travellers too. We continue to take the view that a cut anywhere should be matched, immediately, by a cut everywhere.

“The UK’s APD is currently the highest in the world, with the next highest tax in Germany levied at half the UK rate. The best solution to back business and families in London and the UK as a whole is to reduce APD by 50% across the country to bring the UK into line with our competitors.”