Wednesday, 21 March 2012
It probably was wishful thinking. Today George Osborne announced that Air Passenger Duty will rise in April as expected by double the rate of inflation and in April 2013 in line with inflation.
The expected news is a blow to travel industry pressure group A Fair Tax on Flying which campaigned for the planned rises to be scrapped. Further expected news is the devolving of power to Northern Ireland of how they will set their own APD rates.
Mike Carrivick, the Chief Executive of Board of Airline Representatives called the continued rise a 'reckless brake on the economy'.
He went on to say: 'It is a day-dream to assume that air travellers will continue to pay increased air taxes without shrinking the market. Hitting families and businesses with ever-increasing APD rates and restricting much needed capacity increases at key airports is a recipe for failure.
To make matters worse, residents and visitors to UK are all affected by yet another aviation tax, under the guise of the EU Emission Trading Scheme (EU ETS). By the time the Chancellor wakes up to the fact that visitor numbers are dropping, other countries will have already benefited at the expense of the UK.
We call on the Chancellor to abandon the April APD increase and to reduce the previous rates by the amount of additional income received from the EU ETS.'
At least George is taxing his mates in their business jets from April 2013.
Posted by Tom Warsop at 17:33