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ABTA sees opportunity to ‘bury destructive tax’
ABTA has expressed disappointment that the Chancellor of the Exchequer made no announcement on changes to air passenger duty in his last Budget before the election.
It means the previously announced £2 increase to Band B will still go ahead in April 2016.
However, ABTA chief executive Mark Tanzer welcomed George Osborne’s announcement of a review of the impact a devolved air tax will have on England, saying this presented an opportunity to bury APD once and for all.
Tanzer also welcomed news that there will be a review of business rates, and Osborne’s announcement of lower taxes for the lowest paid workers in the travel industry.
National Insurance payments for apprentices are to be scrapped and the level at which individuals begin to pay tax on their earnings is to be raised twice over the next two years.
Also, from October the minimum wage will be increased 3% by 20p to £6.70 an hour. Osborne said further increases would mean no-one would be earning less than £8 an hour by 2020.
Tanzer said: “With positive economic indicators highlighting increased employment and a growing economy, today’s Budget included some announcements that will be of interest to the travel industry.
“The Government’s review of business rates – to report in time for Budget 2016 – will provide a welcome opportunity to overhaul the outdated and expensive business rates regime.
“ABTA will engage closely with this review to put forward the views of ABTA members.
“Other measures such as investment in transport infrastructure and tax changes, including abolishing apprentice national insurance and further personal tax allowance rises will be welcomed by travel businesses and their employees.
“On Air Passenger Duty, it is of course disappointing that Band B APD will rise by inflation from April 2016 by £2; however, the Government’s commitment to looking at the negative impact of devolved APD on England is an opportunity to continue to highlight the damaging impact of this tax overall – and must be viewed as an opportunity to bury this destructive duty once and for all.”
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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