Travel escapes APD hike in Brown’s Budget

The travel trade has escaped any further hike in Air Passenger Duty in Gordon Brown’s Budget. Otherwise yesterday’s statement by the Chancellor was seen by the industry as being broadly neutral, with little to concern operators or agents. ABTA chief executive Ian Reynolds welcomed the Government’s announcement that there will be no increase in Air Passenger Duty. “This decision is a welcome shot in the arm for the travel trade, especially as we are still suffering from the long term effects of September 11 and the Iraq war,” said Mr Reynolds. “Any increase would have damaged the travel trade and unfairly penalised families and those on lower incomes. We have lobbied the Treasury extensively on this and we are pleased that they have taken on our views” Tourism Alliance director-general Richard Tobias said the Budget would make “little difference” to the trade other than coach operators who may have to pass on the cost of a 2.5p hike in a litre of diesel fuel. “It may make consumers more confident in that taxes won’t rise in the short term,” he added. “Despite the events in Madrid, travel and tourism is proving pretty resilient, partly due to the low cost airlines and travel to the US due to the strength of the pound.” Report by Phil Davies