HOLIDAY businesses operating in the North East have written to Business Secretary Vince Cable urging him to resist any increases in Air Passenger Duty (APD).

Budget airline Jet2 have joined the Holiday Discount Centre, Norseman Travel and Newcastle Airport in signing the letter which says that any increase in the tax would have a “devastating consequences on jobs and businesses”.

In the letter sent yesterday, they urge Dr Cable, who has Cabinet responsibility for regional growth, “to reconsider the Coalition Government’s policy towards aviation tax” adding that, “as well as punishing holidaymakers, the impact on UK businesses is shocking”.

The Journal has been running its A Tax Too Far campaign against APD since 2009 because of the adverse effect it has on regional airports and the North East economy.

Airport chief executive Dave Laws said: “Air Passenger Duty is a regressive tax. There is no doubt that it is damaging the UK economy, and is hampering our efforts to improve the connectivity of regions like the North East. The Government has an opportunity now to intervene and provide an economic stimulus by at the very least freezing the rate of APD.”

An increase in APD is due to take effect next April, with Chancellor George Osborne indicating that he plans to increase it by more than the rate of inflation.

The letter to Dr Cable, which is signed by Mr Laws, Alastair Ruffman of Norseman Travel, Jet2 managing director Ian Doubtfire plus Steve Campion, managing director of the Holiday Discount Centre.

It says: “The UK’s uniquely high level of taxation is already eight-and-a-half times more than anywhere else in Europe at the top rate, yet the UK intends to not only keep it but to increase it in 2012.

“Indeed, even before the Government’s planned double-inflation increase next year, a typical British family of four travelling in economy class currently pays £240 more than most European countries to fly to the USA and almost £50 more to fly within Europe.

“As well as punishing holidaymakers, the impact on UK businesses is shocking.

“Research by A Fair Tax on Flying alliance found that businesses alone paid the Treasury around £600m last year in aviation tax; and according to a recent British Chambers of Commerce report, were APD to be increased by 5% in real terms every year – a very likely scenario – it could result in a potential loss to the economy of £3bn by 2020, and over the next five years 25,000 jobs could be put at risk as people opt not to fly to or from the UK.”