The government has confirmed it will make an announcement on the future of Air Passenger Duty in the Budget on March 23.
Transport minister Theresa Villiers told industry leaders on Wednesday: “We are looking at the impact of taxation on aviation. We will publish our views on APD in March. But I won’t anticipate the announcement in the Budget.”
Villiers also confirmed the publication of proposals for Atol reform is imminent. She said the government recognised consumer protection and confusion among holidaymakers had to be addressed.
She said: “The court’s interpretation of a package holiday in the recent Travel Republic case has compounded the problem. The Atol scheme needs modernising. The work underway will make Atol more relevant to the needs of the modern market.”
Villiers declined to say whether businesses operating like Travel Republic would require an Atol when the regulations change. She told Travel Weekly: “We are still looking at it. We will be making an announcement shortly.”
The minister suggested regulation of ‘click-through’ sales of flights plus accommodation through separate but associated websites would require primary legislation by Parliament and do not form part of the reforms this year.
But she added: “I am very much aware of the issues around click-throughs. I hope to give more clarity on this soon. We are just not ready yet.”
Villiers was speaking at a Transport Times conference in London on A New Strategy for UK Aviation. For more on this see this week’s Travel Weekly.