Airlines tell Chancellor that scrapping 'Air Passenger Duty' will drag Britain out of recession

5 February 2013

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."

TOPICS:   Travel   Tax


  • Captain C.
    In further news, the bears promise to use toilets if the government will supply toilet paper, and the Pope insists there is nothing wrong with his registering as a "Jedi" in the last census.
  • Martin
    In unrelated news , brewers tell the chancellor that cutting tax on beer will bring us out of recession, and Gregs say it's all due to the pasty tax.
  • Archie
    I like the tax as it means less chavs on the long haul flights as it's too expensive for them.
  • Captain W.
    Right, so scrapping APD encourages people to get out of this god-forsaken hellhole and spend money in Turkey, Greece, etc instead. How exactly does that boost our own economy ...?
  • chewbacca
    Why don't we all tell that prick Osborne that cutting income tax to 1% will "drag" us out of recession? Seems any old fucker can tell that prick anything they like...
  • Clarkson
    If I didn't have to pay as much APD, Corporation tax or Fuel Duty, I'd be able to pay my employees much more. Recession, the gift that keeps giving...
  • Tim B.
    A treasury spokesman said "Fuck off, just give us the money and stop moaning about it"
  • Kevin
    More likely treasury spokesman said fine, so which tax would you like us to increase to make back the money in the meantime?

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