Partly Cloudy

Partly Cloudy

max temp: 11°C

min temp: 6°C

Search

UK: Airlines claim passenger duty abolition would boost economy by £16bn

PUBLISHED: 16:01 04 February 2013 | UPDATED: 16:01 04 February 2013

Stansted Airport

Stansted Airport

Photo © BAA Limited. Photo is licenced for single agreed use by International Airport Review and must not be distributed - pleas

THE Treasury today rejected claims that scrapping the Air Passenger Duty (APD) airport departure tax would boost the UK economy by at least £16billion in the first three years.

Abolition of the tax would result in almost 60,000 extra jobs in the UK in the long term, according to a report commissioned by four UK airlines, including British Airways, with the move paying for itself through resulting increases in revenue from other sources such as Income Tax and VAT.

The report, compiled by consultants PricewaterhouseCoopers (PwC), said the boost to the economy would come from extra investment in the aviation industry, an increase in inbound tourism and improved productivity resulting from increased business travel.

The four airlines, which besides BA included Virgin Atlantic, Ryanair and easyJet, said: “Should APD be abolished, the aviation industry would be able to move quickly to add new flights in and out of the UK, or invest in new products and services, creating new opportunities for businesses and much-needed jobs across the UK.”

However, a Treasury spokesman said: “We do not recognise the figures in this report or agree with the assumptions behind it.”

Since 2010, any increase in APD had been limited to the rate of inflation, so that the rate paid by most passengers had increased by just £1, he added.

Search hundreds of local jobs at Jobs24

0 comments

Jack Stein, Rick Stein’s middle son, and Paul Rankin, will put on three shows each day of the festival.

St Elizabeth Hospice’s new store in Gloster Road, Martlesham, opened its doors to the public on Friday with the help of one of its patients.

Mike Spenser-Morris, of NHP Holdings, would pump millions of pounds into the proposed Travelodge and Starbucks development in Bury St Edmunds.

Over a £1,000 was raised for national gardening charity Greenfingers after Perrywood Garden Centre and Nurseries in Tiptree, Essex held a quiz night earlier this month.

The UK is almost bottom of a European league table for maternity leave, according to a new study.

Management Jobs

Show Job Lists

Most read

Most commented

Topic pages

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter
MyDate24 MyPhotos24