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UK Government attacked for increasing APD

The British government has been widely criticised by travel industry representatives internationally for announcing increases in the air passenger duty (APD) levied on all air travellers who fly from the UK. Chancellor of the exchequer Alistair Darling announced that the new APD levels would start at £10 per person for flights to Europe, and go up to £60 for travellers flying to Australia and New Zealand, in his pre-Budget report. A key industry body, the Association of British Travel Agents (Abta), attacked the basic concept of APD, claiming that it is considered environmentally inefficient because it penalises airlines who operate their aircraft as close to passenger capacity as possible. Abta also claimed to be 'particularly concerned' that the APD reform might discourage UK tourists from travelling to longer-haul destinations whose economies are reliant on tourism, such as the Caribbean and Kenya. Abta's head of development Andy Cooper said: 'The travel sector has not yet felt the full effect of the recession, but travel lags behind the rest of the economy by about six months and we are facing an extremely challenging 2009. 'The money being raised from APD will not be hypothecated to go to environmental causes, but will just end up in general government coffers. ' The US Air Transport Association (ATA) also criticised the tax increase, describing it as 'counterproductive to airlines' environmental progress'. James C May, ATA's president, said: 'The decision to revise and further increase the UK duty is a revenue raiser for the government under the guise of environmental protection. '

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