Air Passenger Duty tax’s impact on trade concerns PM

Nov 3 2009 by William Green, The Journal

SOARING airline taxes and their impact on trade are worrying the Prime Minister, The Journal has been told.

The Premier’s official spokesman yesterday said Gordon Brown was “worried” about the effect of hikes in Air Passenger Duty.

But despite business and airline chiefs warning it could have a devastating impact on the regional economy, the Government is pressing ahead with further increases in the tax.

Fears have been raised the changes – passed on to travellers through fares – will force airlines to scrap key routes and stop further services being established in the future.

That could hit the region’s economy, with some firms potentially having to relocate.

And The Journal’s A Tax Too Far campaign has won widespread support in calling for APD to be frozen.

But challenged yesterday, the Prime Minister’s official spokesman said: “He is not planning to carry out a personal review, but clearly he is concerned about any impact that it might have on customers and air travel.

“But clearly this is something that has been carefully thought about and needs to be implemented.”

Chancellor Alistair Darling has also defended the APD rises as necessary to help pay for the rescue of banks like Northern Rock.