UK's top airline bosses urge Philip Hammond to abolish tax on FLIGHTS
BRITAIN’S top airline bosses today join forces to urge Philip Hammond to abolish the passenger tax on flights.
Philip Hammond fresh from Heathrow expansion approval
They say this would send a clear message to the world that the “UK is open for business”.
In an open letter to the Chancellor the chief executive officers from three of the country’s biggest airlines have called on him to scrap air passenger duty to help Britain boom after Brexit.
With less than three weeks to go until Mr Hammond delivers his first autumn statement as Chancellor, Willie Walsh, the boss of British Airways’ parent company IAG, has teamed up with Craig Kreeger from Virgin, Peter Fankhauser from Thomas Cook and Tim Alderslade from the British Air Transport Association to make the demand.
They claim axing the despised tax will increase Britain’s international competitiveness, while boosting tourism and making foreign holidays cheaper for millions of families.
Detailed economic analysis conducted by PricewaterhouseCoopers has shown that abolishing the tax would boost UK GDP by 1.7 per cent and create 61,000 new jobs by 2020.
Abolition would pay for itself by raising revenue from other taxes such as corporation tax as well improve the spending power of tourists visiting the UK.
We keep all taxes under review
Scottish First Minster Nicola Sturgeon is set halve air passenger duty between 2018 and 2021 in a bid to boost business – adding pressure on the Chancellor to follow suit.
Anyone thinking about coming to the UK long-haul on an economy fare has to pay £73 on top of the cost of their ticket.
For passengers flying business class, this figure rises to £146.
Our European neighbours pay an extra £13 for every visit to the UK, and those travelling between two UK cities will pay twice, £26 for both journeys – as APD is a departure tax levied on passengers travelling from a UK airport.
APD in the UK is more than three times the rate in France and more than twice that of Germany.
The UK sits 137th out of 138 countries with respect to air taxes and airport charges.
The open letter adds: “For any country, let alone an island, trading nation, a high level of air connectivity is critical for a thriving economy.
“Only aviation can connect the UK to the emerging markets that are seen as vital to our continued prosperity, and which enable holidaymakers to enjoy a well-earned family holiday, both within Europe and further afield.
“So why does the Government maintain, and regularly raise, a barrier to travel to and from the UK?”
Philip Hammond on post-Brexit economic growth
The tax has increased by 824 per cent between 1994 and 2015.
At the same time, competitors have been reducing or abolishing their equivalent air taxes.
The Treasury said: “We keep all taxes under review.”