Industry reaction to budget

The travel industry has reacted with anger and dismay after the Government failed to scrap plans for a rise in Air Passenger Duty.

In his Budget announcement , the Chancellor Alistair Darling made no reference to the travel tax, which is due to increase in November and again in 2010.

Airlines, agents, ABTA and other industry associations had urged the Chancellor to scrap the tax altogether, or at least cancel the second phase of increases.

But despite their pleas, and evidence to show the negative impact on the tourism industry, the Government has refused to back down.


* Mark Tanzer, ABTA chief executive, said: "This unfair tax already costs air travellers from the UK £2 billion and covers its environmental costs.

"This holiday tax represents a heavy and growing burden on families at a time when they are being forced to reconsider whether they can afford to take a well-earned break.

“As one of the few successful sectors in the UK economy, the Government has targeted the travel industry to plunder, without regard to the damaging impact to jobs."

He said ABTA will continue to challenge the increases, and its anomalies.


"The Chancellor has chosen to ignore the experts and press on regardless. I think he has under-estimated the impact on tourism jobs and the economy."


"Last year the Chancellor bottled the planned reform of Air Passenger Duty which would have made it a fairer, greener tax and instead simply announced a huge tax raid on hard-working families while continuing to exempt private jets and cargo planes.

"In today’s Budget he should have waived the planned increases in order to help an industry which will be at the forefront of dragging the economy out of recession, but he bottled that as well.”


"The Government’s own figures show that aviation already pays its own way. By slapping another tax on a British success story like aviation, the Chancellor runs the risk of endangering a recovery that could be led by aviation.”

Posted on 23 April 2009 at 10:06

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