Several MPs have urged the UK Government to cut or abolish Air Passenger Duty (APD) to ensure that the country’s economy continues to grow unhindered post-Brexit.
The UK’s APD rate is higher than any other country’s in the European Union.
Introduced in 1994, APD adds £13 to the cost of every short-haul flight ticket and £78 to the cost of every long-haul flight ticket.
According to the MPs, cutting or abolishing APD will not only support the UK’s economy after Brexit but also open up many new routes for airlines.
Research revealed that two thirds of airlines would start flying on new routes beyond London and south-east UK if APD is reduced by 50%.
Meanwhile, nine in ten airlines said that they would invest more in existing routes.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
The report stated: “APD runs counter to many of the government’s stated priorities, including increasing exports and creating jobs. Its removal will give Britain’s aviation sector the chance to flourish once more, boosting connectivity and driving economic growth.”
APD is set to be increased again from April next year.
Conservative MP and chair of the APPG on air passenger duty reform Henry Smith said: “We have the highest aviation taxes in Europe, and this is simply not sustainable and runs counter to the government’s aims for a truly global Britain.
“We are calling for the chancellor to act decisively and remove this barrier to growth by cutting APD by at least 50% to ensure that Britain has a flying start to our post-Brexit future.”