The industry’s campaign for a fairer Air Passenger Duty has been dealt a blow by the Treasury.
Chloe Smith, the new economic secretary to the Treasury, told MPs on Friday that she could not “promise the House that APD will be cut in the near futureâ€.
She said the Government needed to be “frank about the situation in which we find ourselves†and pledged to continue close dialogue with airports, airlines, and other travel organizations.
She acknowledged concerns from some MPs about anomalies in the banding structures, particularly on flights to Caribbean destinations.
Smith said she would “hold a series of meetings with stakeholders on that subjectâ€.
Smith also tackled the question of whether APD should be lower from UK regional airports than from London.
“It is fair to say there is no consensus on the matter,” she said.
“Some regional airports have asked us to consider lower APD rates for the regions, but several airlines have asked us to consider the opposite.â€
by Bev Fearis
