Airport taxes could cost UK economy £10bn and 250k jobs

July 14th, 2012

Business leaders have supported a move to reduce the level of Air Passenger Duty (APD) after MPs received more than 10,000 emails from constituents.

The London Chamber of Commerce and Industry (LCCI) and the Institute of Directors (IoD) have added to the calls from the public to cut the airport departure tax, which went up by approximately 8% in April.

APD could cost the UK economy up to £10bn in lost growth and result in 250,000 fewer jobs over the next 20 years, according to the British Chambers of Commerce.

LCCI chief executive Colin Stanbridge said: “APD presents a real risk to the economy, putting off both tourists and those who want to come here to do business.

“We need the government to carry out a proper evaluation of the impact of APD and consider the wider economic and employment effects of reducing or eliminating APD.

“It is imperative that the UK’s competitiveness is not lost in the short-term desire to maximise revenue for the Exchequer.”

A family of four travelling from the UK to the USA can expect to pay £240 in APD, compared to just £90 if they flew from Germany, £14.50 if they travelled from France and no APD whatsoever if they left from many other European countries.

Thousands of constituents have got in touch with their MP by using a template email from the campaign group a fair Tax on Flying.

It wants MPs to support a parliamentary motion which expresses concern about the financial impact of APD on families and their ability to fly. the motion has already received cross-party support from 44 MPs.

Graham Brady MP, chairman of the Conservative Party’s backbench 1922 Committee, said: “The UK already has the highest air passenger taxes anywhere in the world and this is harming our competitiveness as a nation as well as adding unreasonably to the cost of living for millions of people.

“I hope that the Treasury will be persuaded to look again at the impact of this damaging tax.”

Institute of Directors director general Simon Walker said: “The UK’s air passenger taxes are now the highest in the world, which harms our economy in numerous ways. All the hard work to build up tourism and inward investment is undermined by this unfair tax.”

Airport taxes could cost UK economy £10bn and 250k jobs

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