Airlines support ABTA’s call for air tax abolition
The British Air Transport Association has backed ABTA’s call on the Government to abolish Air Passenger Duty during this Parliament in its response to a Treasury consultation on APD devolution.
The Treasury paper set out three options for supporting English regional airports from the impacts of Scotland – and potentially Wales – reducing or abolishing air tax in their own countries.
The three options have been rejected by UK airlines due to their significant flaws, questionable legality and a failure to tackle the fundamental problem of UK APD being the highest tax on flying in Europe and one of the highest in the world, said BATA.
Chief executive Nathan Stower added: "The Scottish Government’s commitment to reduce the burden of APD by 50% from 2018 is great news, but it creates a new inequality for passengers living right across the UK and a competitive challenge for England.
"The Treasury is right to recognise that devolution will require a policy response in England, but the options in their paper are simply inadequate. Passengers living in London and the South East should not have to pay more tax to fly for business or leisure than passengers living in Scotland, Wales or any other region in England for that matter.
"Luckily there is still time to put other options back on the table for consideration, including abolition and significant reductions of UK APD, that would be fairer to passengers across the UK and improve international competitiveness."
British Airways’ parent IAG said the Government’s proposals to mitigate damage caused to English airports by devolving APD to Scotland and Wales lacked credibility.
"The Government admits that APD devolution will negatively impact English regional airports as passengers will rush across borders to avoid paying the highest aviation tax worldwide. Its proposed options are complex and unworkable," it said.
Willie Walsh, IAG chief executive, said: "The Treasury has finally acknowledged that partial APD devolution will not work and these options are just a smokescreen. This is an exercise in futility. APD should be scrapped across the UK otherwise we end up with a domino effect at airports as passengers drive across the country seeking cheaper flights. The northern powerhouse will be seriously undermined as passengers flee northern airports.
"Scotland and Wales know that scrapping the tax on flying will boost their economy. How can it be fair for English travellers to carry on paying this tax. The idea that you can resolve this by allowing local authorities to raise their own mini-APDs is laughable. It is time to scrap this tax."
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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