Six in Ten Conservative MPs believe reduction in APD should be considered

Half of all MPs believe APD is damaging the UK Economy
ABTA calls on Government to take action now it is back from recess

2012-09-11 — /travelprnews.com/ — Six in Ten (61%) Conservative MPs believe a reduction in Air Passenger Duty (APD) should be considered to stimulate growth according to a new survey published today by ABTA – The Travel Association, also a member of A Fair Tax on Flying campaign. It comes as over 250k emails have been sent to MPs from UK residents and foreign travellers asking for a review of the impacts of APD on UK jobs and growth and 96 MPs have signed an EDM calling for such a review.

MP survey
The ComRes survey of more than 150 MPs shows that half (49%) of MPs believe that current rates of APD are putting UK businesses at a competitive disadvantage, while two in five MPs (40%) firmly believe they are damaging the UK’s position as a hub for global air travel. Additionally, over half (51%) of MPs believe that a reduction in APD should be considered as a way to increase the international competitiveness of the UK economy, therefore encouraging growth.

Conservative MPs feel strongest about APD
The research indicates that Conservative MPs are most likely to believe that the current rates of APD are damaging to the economy. A majority 61% of Conservative MPs believe that a reduction in APD should be considered as a way to increase the UK’s competitiveness and 57% believe that APD is damaging the UK’s position as a global air travel hub. The figures suggest that the Conservative backbench is keen to see the Chancellor implement policies that will encourage growth.

The research was conducted in the early summer, before the 250,000 emails had been sent to MPs so it is possible that a re-poll would show even higher numbers believing that APD is damaging to the economy.

Mark Tanzer, CEO ABTA – The Travel Association said: “At a time when we are facing one of the toughest ever downturns in history, the Government must take every measure to get the country back on track to growth.  The very fact that half of MPs believe current rates of APD are damaging the economy is a clear indication we need a review into the impacts of this tax before it does any further damage. Other governments, such as the Dutch, abolished the tax after a review found that the revenue raised was outweighed by the revenue lost. This summer has also shown there is overwhelming public support for a review so now the Government is back from recess we call on them to listen and act.”

For further information

Sean Tipton, Media Relations Manager, tel: 020 3117 0513
Gillian Edwards, Senior Public Relations Manager, 020 3117 0514
Victoria Bacon Head of Communications, tel: 020 3117 0515
Out of Hours:  Contact the Duty Press Officer via pager: 07659 190 987
E-mail: press@abta.co.uk
Web: www.abta.com
Twitter: @ABTAtravel

Notes to editors

ABTA has been at the heart of travel for more than 60 years. Our purpose is to help our Members to grow their businesses successfully and sustainably, and to help their customers – the travelling public – have confidence in their travel experience.

The ABTA brand stands for expertise, reliability and fairness. These qualities are core to us. They ensure that holidaymakers remain confident in the holiday products that they buy from our Members.

We help our Members and their customers navigate through today’s changing travel landscape by providing schemes of financial protection and a course of redress if something goes wrong; by raising standards in the industry and by giving guidance on issues from sustainability to health and safety; and by presenting a united voice to government to ensure the industry and the public get a fair deal.

ABTA currently has over 1,300 Members and represents over 5,000 retail outlets and offices. For more details about what we do, what being an ABTA Member means and how we’re working at the heart of the industry to ensure that we continue to build confidence in travel visit www.abta.com.

About the survey

ComRes surveyed 150 MPs on the ComRes Parliamentary Panel between 22nd May and 22nd June 2012 by self-completion postal questionnaire and online. Data was weighted to reflect the exact composition of the House of Commons in terms of party representation and regional constituency distribution.

A Fair Tax on Flying Campaign
A Fair Tax on Flying campaign consists of over 30 leading travel organisations including airlines, airports, trade associations and destinations. More information can be found at www.afairtaxonflying.org and www.facebook.com/afairtaxonflying.

A Fair Tax on Flying campaign members: ABTA – the Travel Association, American Airlines, Airport Operators Association, Association of National Tourist Offices and Representatives, British Airline Pilots’ Association, British Airways, BAA, The Board of Airline Representatives in the UK, British Air Transport Association, Blackpool Airport, BMI, Bristol Airport, Carlson Wagonlit, European Tour Operators Association, Expedia, Gatwick Airport, Guild of Travel Management Companies, Jet2, Lastminute.com, Leeds Bradford International Airport, London Chamber of Commerce and Industry, London City Airport, London Luton Airport, Manchester Airports Group, Manston Kent Airport, Monarch, Newcastle International Airport, Scottish Passenger Agents’ Association, The Caribbean Council, The Co-operative Travel, Thomas Cook, Tourism Alliance, TUI Travel PLC, UKinbound, Virgin Atlantic, Virgin Holidays, World Travel and Tourism Council

More information about APD:
• The overall APD tax take increased significantly on 1st April 2012, after the Government implemented an 8% APD increase.
• Compared with seven years ago, APD rates have risen 160 per cent on short-haul, and up to 360 per cent on long-haul. Inflation over the period has been about 18 per cent.
• The Office for Budget Responsibility says that APD revenue is projected to rise from £2.76bn in 2011/12 to £3.9bn in 2016/17. The Treasury’s 2011 Budget documents assume annual increases in APD.
• A TripAdviser survey found that as many as 68% of UK travellers said the recently-increased air passenger duty (APD) would affect their travel plans, with 9% saying the impact would be “substantial”. Nearly two thirds (64%) believed APD to be unfair, with only 11% thinking it was fair.
• In December 2011, 50 cross-party parliamentarians wrote to the Chancellor urging him to re-think his plans to increase APD.
• An International Air Transport Association report (Dec 2011) said that “European carriers are by far in the most challenging position. Higher passenger taxes and weak home market economies have limited profitability in Europe.”
• By the Department for Transport’s own figures, aviation taxes exceed the sector’s environmental costs by over half a billion pounds every year.
• Many European countries including Belgium, Holland and Denmark have abandoned their aviation taxes, due to the negative effects on their economies. In the longer-term, analysis shows that the UK economy will forego £750m of wealth and 18,000 jobs due to the recent rises in APD (November 2010), with around half the extra revenue raised offset by tax revenue losses in the wider economy (source Oxera, 2009)

Air Passenger Duty – additional information:
The current rates of tax for economy class are below, along with the equivalent tax rate in previous years.

• Only four other European countries levy some form of air passenger tax.
• Denmark, Norway, Malta and Holland have all scrapped similar taxes as the revenue raised was outweighed by the damage caused to their economies.