Brown’s Budget acknowledges APD anomaly

Friday, 22 Mar, 2007 0

The anomaly over the two-tier rate of Air Passenger Duty has been recognised by the Government in its Budget.

Chancellor Gordon Brown said the current system of APD, where premium economy passengers pay the same higher rate as business and first class passengers, might not send the right environmental signals.

But he says the Government would only be prepared to make a change “on a broadly revenue neutral basis”.

The Government is now seeking further discussions with the travel and aviation industry over the anomaly.

The Federation of Tour Operators has welcomed the Government’s acknowledgement of the distortion, which came under item 7.85 in the Budget speech.

FTO spokesman Graham Lancaster said: “This is one of the areas we have been lobbying them about, and we look forward to further discussions. “

Last month, the FTO launched a legal challenge against the Government over APD.

“There is not a precise timetable, but the procedure is running its course,” said Lancaster.

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Bev

Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.

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