BUSINESS leaders claim Government plans for further increases to taxes on flights could cost the UK £10.6 billion and 250,000 jobs by 2030.

In a new report, the British Chambers of Commerce have backed the stance led by Newcastle Airport, which wants an end to, or at least a fairer system of, Air Passenger Duty.

The charges, which The Journal’s A Tax Too Far campaign has fought as unfair and harmful to North East economic interests, have risen by up to 325% since 2007 and are now up to 8.5 times the European average – adding up to £170 per ticket to the cost of travelling.

Commenting in the report, Flying in the face of jobs and growth: How aviation policy needs to change to support UK business, the group’s director general John Longworth said that despite claiming it is not anti-aviation, the Government was doing its best to prove otherwise.

He said: “In the last year we have seen the Government abandon an air transport white paper widely applauded for its long-term clarity, with ministers citing their cancelling of its key projects as an early success.

“But 2010 also saw an announcement that aviation policy was to be fundamentally redrawn and the Government now has a simple choice: it can set a bold, long-term aviation policy that serves our businesses and boosts economic recovery or it can mark time and meander its way to a more anodyne result.

“UK businesses do not believe we have the luxury of such time and on aviation policy the Government must act now.”

Among the recommendations contained within the report, the BCC say that not only should the Government not look to further raise the levels of APD, it should use the money it receives from the new European Union Emissions Trading Scheme, which charges airlines for the amount of carbon they produce flying into and out of the continent, to offset or even reduce existing taxes.

The chambers also say that offering incentives to increase the amount of green low-carbon fuel used by airlines could even lead to thousands of jobs being created and more money flowing into British businesses.

Graeme Mason, planning and corporate affairs director at Newcastle Airport, welcomed the recommendations.

He said: “The Government has set an objective to re-balance the economy. Growth in the economy will be dependent on a strong medium-sized business sector which can deliver double digit growth.

“Recent research recognises that those that achieve high growth are those businesses that have international links.

“A critical part of this policy framework needs to be giving support for these companies to develop and enable the trading of goods, services and ideas. It is critical that the Government recognise this link and put airports and air services at the heart of its strategy to get the region and UK back on its feet.”