UK AIRPORTS and airlines expressed disappointment at the Chancellor’s limited response to their concerns over Air Passenger Duty (APD).
And Liverpool John Lennon airport warned of a double tax whammy facing passengers next year when the UK enters the EU Emissions Trading Scheme (ETS), effectively doubling the tax burden on travellers.
JLA has worked with the Airport Operators Association (AOA) in lobbying for changes to APD and they said they welcomed the fact the Chancellor has listened to their submissions and decided not to increase APD for this year next month.
But JLA management raised the possibility of double taxation, coupled with the fact Mr Osborne could still raise APD next year.
They said UK APD is already up to 8.5 times more than the European average and that many European countries, including Belgium, Denmark, Germany, Holland, Ireland and Malta, have either already abandoned their aviation taxes, or indicated that they will do so, due to the negative effects on their economies.
JLA and the AOA claim that even with a freeze in APD this year the UK economy is already losing £750m and 18,000 jobs as a direct result of last November’s rise in APD, not to mention the thousands of UK tourism jobs lost because less foreigners can afford to holiday here and pay APD on their departure flights.
Scotland alone is estimated to be losing more than 1.2m passengers, 148,000 tourists and £77m in revenue in the next three years.
Craig Richmond, chief executive of JLA owner Peel Airports, said: “We are pleased the Government has listened to our concerns, however this is only the beginning and we urge anyone who travels by air, both on business or leisure, to continue to lobby Government further.
“Unlike the vast majority of European nations who experienced air passenger growth last year, the UK saw a decline. A ‘double taxation’ next year will simply deter even more passengers from flying to and from the UK in future.”
Darren Caplan, AOA chief executive, added: “UK airports cautiously welcome the fact that APD is not going up immediately, though would not support the delayed increase coming into effect next year.
“We now call on the Chancellor to emulate the decisions of European competitor nations to reduce or abolish APD.
“Additionally, many people aren’t aware that UK aviation is also joining ETS in 2012.
“This means that as things stand passengers will be subject to the costs of both ETS as well as aviation tax, so that holidaymakers and business travellers will effectively be paying double taxation next year.
