The government is being urged to tackle the impact of Air Passenger Duty in the March Budget after the House of Lords backed industry calls for a review of the tax.
Ten members of the House of Lords spoke during the hour-long debate on Monday and they were all critical of APD.
Many backed calls from the A Fair Tax on Flying lobby group for a Treasury review.
Lord Palmer, who opened the debate, said that a growing body of evidence pointed to the economic damage APD was having and said the “government must take this grave situation into account”.
Lord Howell of Guildford said: “This is Treasury obfuscation and short-termism at its worst,” adding that “APD in its current inflated form is working against our friends, against our foreign policy goals and against the national interest”.
Lord Fowler said: “I entirely agree with all those in this debate who have argued for an independent economic assessment of APD. My view is also that this needs to be done quickly, before more damage is done and more jobs are lost.”
Abta head of public affairs Luke Pollard reacted by saying: “Every day more and more voices are backing the call for an independent review of APD and the impact it is having on jobs and growth.
“Members of the House of Lords made it clear they support a review, we know businesses want a review and the public want a review. This is absolute common sense for a Government whose main priority is growth and economic revival.”
Air Operators Association chief executive Darren Caplan said: “The House of Lords spoke loud and clear and in doing so joined forces with more than 100 MPs of all parties who have called for a Treasury review into the effects of APD.
“It is time for the government to heed this call, starting in the March Budget.”
Board of Airline Representatives in the UK chief executive Dale Keller added: “Lord Palmer’s rallying call for good old fashioned evidence based policy making in requesting a review on APD should not be ignored by the Treasury.”