Airlines call on Chancellor to ‘finish the job’ and abolish Air Passenger Duty to boost growth, trade and tourism

BATA has called on Chancellor George Osborne to use next month’s summer Budget to abolish Air Passenger Duty (APD) to boost growth, trade, and productivity, and encourage inbound tourism. Nathan Stower, Chief Executive of BATA, said: “The new Conservative Government wants to increase trade with the emerging economies, tackle low productivity and create two million jobs over the next five years. The experience of other countries and economic modelling for the UK suggests that the abolition of APD would make a significant contribution to those aims. The Chancellor should use the Budget to announce plans for the abolition of APD – the highest tax on flying in the world – during the course of this Parliament.”

UK’s ‘sky high’ tax on flying bottom of world league table

136 countries are more competitive than the UK when it comes to air ticket taxes and airport charges according to the World Economic Forum’s biennial Travel and Tourism Competitiveness Report published today. Nathan Stower, Chief Executive of the British Air Transport Association, commented:

“We knew UK Air Passenger Duty is sky high compared with our competitors in Europe. We know now that it is one of the least competitive taxes in the world. The next government should end this damaging tax on trade, tourism and families and abolish APD in the new Parliament.”

New statistics show £158m increase in tax paid by air passengers

New statistics published today by HM Revenue and Customs show that passengers paid £3.17 billion in Air Passenger Duty (APD) in the financial year 2014-15 – an increase of £158m or 5.2% compared with 2013-14. The Office for Budget Responsibility estimates that the tax take will increase by a further £500 million during the next Parliament, despite the duty being abolished for children under 12 from this Friday (and for under 16s from March 2016) and a recent simplification of the duty’s banding system. By 2019/20, APD is forecast to raise £3.7bn a year – more than beer and cider duties (£3.6bn) and the TV licence fee (£3.3bn), and the same amount as the Bank Levy.

British Air Transport Association responds to Liberal Democrat manifesto

Responding to the publication of the Liberal Democrat manifesto, Nathan Stower, Chief Executive of the British Air Transport Association (BATA) said:

“I welcome the Liberal Democrats’ recognition of the value of tourism and heritage to the UK economy and their commitment to make sure the British tourism industry is able to compete with other major world destinations. Unfortunately, their opposition to any expansion at Heathrow or Gatwick (as well as Stansted or a new Thames Estuary airport) will make that task harder over time, and is at odds with their promise to carefully consider the conclusions of the Davies Review.”

British Air Transport Association responds to the Conservative Party manifesto

BATA has responded to the publication of the Conservative Party manifesto, welcoming the commitment to support for tourism and their commitment to simplify and speed up visa issuance, while also expressing disappointment that the manifesto failed to set a new course on Air Passenger Duty.

British Air Transport Association responds to Labour Party manifesto

BATA has responded to the publication of the Labour party manifesto, welcoming Labour’s commitment to make a swift decision on expanding airport capacity in London and the South East while also warning that adding the proposal to add another charge on visitors to the UK – to fund extra Border Force staff – will make the UK more uncompetitive in attracting international tourists, business travellers and inbound investment.

Budget 2015 – BATA comment

“The Government has missed an opportunity to go further in setting a new course on Air Passenger Duty. Retaining the highest tax on flying in the world doesn’t make sense when you want to increase exports, expand inbound tourism and encourage UK businesses to invest and grow.

“With the Scottish Government committed to halving APD rates when powers over the tax are devolved, and further devolution to Wales and the regions under consideration, the next Government should avoid unnecessary complication and boost the UK economy as a whole by simply abolishing APD in the new Parliament.”

Ready for take off – UK airlines launch manifesto for new Parliament

BATA has published its manifesto ahead of the General Election in May.

‘Ready for take off: our priorities for the new Parliament’ sets out the vitally important economic and social contribution that UK airlines make to national life.

Five key policy areas are identified where action is required in the next Parliament to create a more level playing field from which UK airlines can compete, grow and deliver more in the years ahead.

APD: UK 4 – Germany 1

With the last Budget of this Coalition Government exactly one month away, new analysis by the British Air Transport Association proves that the UK has the highest tax on flying in Europe by a huge margin. Passengers paid over €4billion (£3.14 billion) in Air Passenger Duty (APD) in 2014, compared with just €1 billion (£745 million) raised by Germany’s equivalent Aviation Tax.