The UK Government has confirmed in its Autumn Statement that Air Passenger Duty will increase again in April 2014 in line with inflation.
ABTA, the UK’s travel association, has reacted to the news by revealing research showing that 52% of MPs are increasingly concerned about the damaging impact of APD on the UK’s economy.
The same proportion also believes the tax is damaging the position of the UK as a hub for global air travel.
Significantly, Conservative MPs are most likely to believe the tax to be putting UK businesses at a disadvantage (60%).
In a separate consumer survey, ABTA also found 41% of consumers believe that APD puts the UK economy at a disadvantage.
ABTA chief executive Mark Tanzer said: "It’s very disappointing that the Chancellor has once again chosen not to conduct a proper review of APD.
"It’s clear that there is strong support for a review both from within Government and from the public, as well as evidence from Europe that the tax is damaging.
"Earlier this year the Irish Government abolished its version of APD, joining many other European countries in doing so, as they realised the tax was doing more harm than good to the economy."
Darren Caplan, chief executive of the Airport Operators Association, said: "Whilst the Chancellor had positive things to say about the need for improved surface access to UK airports, which the AOA fully supports, we are extremely disappointed that he has again resisted calls to take action on APD.
"There is no getting away from the fact that the UK is becoming more and more isolated on this issue. Whilst countries across Europe – from Ireland to the Netherlands – are recognising that punitive aviation taxes are a drag on economic growth and are busy either abolishing or freezing their respective duties, the Government continues to increase APD year-on-year, in the face of mounting evidence that current rates are damaging UK plc.
"We respectfully call upon the Treasury to look again at this tax ahead of the 2014 Budget, before the UK becomes even more of a global outlier."
