The travel industry has hit out at chancellor George Osborne over a “missed opportunity” to reform Air Passenger Duty in the Budget.
There has been calls for reform of the controversial tax for a number of years citing the “negative impact” it has on the UK economy.
The chancellor made little reference to the tax in today’s Budget but did confirm plans for HS3 and expansion of the M62 between Leeds and Manchester.
Flybe CEO Saad Hammad said the “unfair” and “discriminatory tax” has stifled regional economic growth.
“UK APD is the highest aviation tax in Europe and one of the highest in the world, which penalises disproportionately domestic UK travellers on a per mile basis compared to European short-haul and long-haul.
“It is surely high time the UK Government listened to the needs of regional passengers and took positive steps to reforming or abolishing this tax without further delay.
“If the Chancellor needs the overall £3 billion levied through APD, then we urge him to raise it more fairly by cutting the charge to Scottish levels at regional airports and establishing a higher levy or ‘congestion charge’ at the congested airports in London such as Heathrow and Gatwick.”
American Express Global Business Travel VP and general manager Jason Geall said: “It was once again disappointing that the chancellor neglected to address air passenger duty.
“It now seems likely that Members of the Scottish Parliament (MSPs) will halve the tax north of the border when the Scotland Bill becomes law. This will create an unfair playing field, putting airports and airlines in the North of England at a severe competitive disadvantage. I would urge the government to revisit this matter in the short term,” said Geall.
Stephen D’Alfonso, head of public affairs at travel organisation Abta said he was “disappointed” Osborne used today’s Budget to raise band B APD inflation, rather than address the “uncompetitive” level of APD overall.
“With devolution of the tax to Scotland gathering pace, and the Scottish Government committed to a forward-looking 50 per cent APD cut, we need urgent action from the Treasury to bring APD down across the whole of the country to ensure a competitive, fair rate.”
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