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UKinbound issues pre-budget appeal to Chancellor to cut APD

Published: 16 Nov 2017

UKinbound have written to the Chancellor of the Exchequer ahead of the Autumn budget to appeal for a reduction in Air Passenger Duty (APD).

The UK is currently at a competitive disadvantage, paying more than double the tax of our nearest European trading rival Germany, and charging the highest level of aviation taxes across the EU. The Republic of Ireland and the Netherlands are among a number of European nations who do not charge an APD equivalent in order to boost connectivity, growth, and tourism. 

A cut in APD of at least 50% would reduce the tax burden on UK businesses seeking to maintain and expand new markets overseas, and following the 2014 Smith Commission report the Scottish Government has committed to reducing APD on flights leaving Scottish airports by half. Research by PwC has also found that significantly reducing or abolishing APD would create tens of thousands of new jobs.

Chief Executive Deirdre Wells said, "A reduction in APD would be a clear message to the tourism industry and businesses across the UK that the Government is committed to its vision of a Brexit ready Britain. Effectively a tax on trade, we need to signal to Europe and the rest of the world that the UK continues to be open for business. Tourism is the UK's sixth largest export earner and it's imperative that our industry builds vital trading partners post-Brexit to ensure the economy doesn't adversely suffer.

"The Government acted on concerns earlier this year when it confirmed a freeze on APD band B destinations, but this is not enough to safeguard our nation's competitiveness in a post-Brexit environment."

UKinbound's letter to the Chancellor can be viewed here.

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