Chancellor George Osborne is being urged by an industry lobby group to take “decisive action” to limit the economic impact of Air Passenger Duty.
A Fair Tax on Flying has submitted evidence to the Treasury ahead of December’s Autumn Statement illustrating the damage that the current levels of APD are having.
And it has redoubled its call for a macroeconomic review of the effects of the tax.
The submission highlights the abolition of Irish air tax from next April and encourages the Treasury “to take similar steps to reduce the negative effects of the tax in the UK”.
Bar UK chief executive Dale Keller said: “Our submission sets out a compelling case for reform of APD. The Labour opposition has now joined over 100 MPs, 200,000 members of the British public and over 250 CEOs of UK businesses in requesting a review on the impacts of this tax.
“The Chancellor must listen to this growing grass-roots and parliamentary support and take decisive action.”
Abta head of public affairs Stephen D’Alfonso said: “As the UK economy is showing signs of sustained economic recovery, the time is right for the government to look at this damaging duty.
“APD reform has the potential to accelerate the UK’s recovery and stimulate economic growth. With a growing numbers of MPs calling for a review, we urge the Chancellor to listen to the growing calls from across the political spectrum for action on this crucial issue.”
Airport Operators Association chief executive Darren Caplan added: “The Autumn Statement is another opportunity for the Chancellor to take the initiative on APD reform.
“A growing body of evidence is revealing the damage that APD is having on UK aviation and tourism. In a fast changing, globalised world, countries across Europe are recognising that air taxes are barriers to long-term growth and connectivity.
“The UK risks becoming increasingly isolated if it refuses to put an end to current year-on-year increases in APD, and we respectfully urge the Chancellor to use this statement to change course.”
British Air Transport Association chief executive Simon Buck said: “It’s my hope that the Chancellor will take this opportunity to re-think the Coalition’s approach to taxing air passengers.
“This Autumn Statement could not come at a more important time, with developments in Europe – including the Republic of Ireland’s decision to axe their own version of APD – leaving the UK increasingly isolated.”