Airlines tell Chancellor that scrapping 'Air Passenger Duty' will drag Britain out of recession
60,000 jobs could be created if the Chancellor gets rid of Air Passenger Duty, and help "drag Britain out of recession" according to airlines.
This tax applies to all passengers flying from UK airports and it is argued that scrapping it would deliver a 0.45pc boost to GDP within a year, generating 60,000 jobs by 2020. This is all according to a report commissioned by British Airways, easyJet, Ryanair and Virgin Atlantic.
It'd be good for your pocket too as APD adds £13 to the cost of a short-haul flight and as much as £92 with longer flights. The PwC study estimates the economy would be £16bn wealthier by 2015 if APD got ditched. Basically, in terms of competitive aviation taxes, the only countries worse than the UK are Senegal, Ivory Coast, Mali and Chad.
"I know 0.46pc doesn’t sound a lot but that’s the difference of dragging Britain out of recession and into growth," said easyJet spokesman Paul Moore.
In a joint statement, Willie Walsh, head of BA’s parent company; easyJet boss Carolyn McCall; Michael O’Leary, chief executive of Ryanair; and Craig Kreeger, the new head of Virgin Atlantic, said: "[The report] proves APD is one of the three most destructive taxes, alongside corporation tax and fuel duty."
A Treasury spokesman said: "Despite current pressure on the public finances and the challenge of cutting the deficit, the Government has limited any rise in APD to inflation since 2010. We do not recognise the figures in this report or agree with the assumptions behind it."