Yesterday the UK Government posted it’s response to the Air Passenger Duty Consultation. And the airlines aren’t impressed in the least.
The consultation is at http://www.hm-treasury.gov.uk/d/condoc_responses_air_passenger_duty.pdf for those who want to fall asleep.
HM Government has decided to change… nothing. All rises and income streams will go ahead as planned. Even the idea of differentiating taxes between Premium Economy and normal Economy has been thrown out as “complex”
The response has been branded “a waste of taxpayers money” and “a sham” by the chiefs of British Airways, EasyJetm Ryanair and Virgin, with British Airways issuing it’s own response of recruitment and service cuts.
All the heads have called for an independent study on the economic impact of Air Passenger Duty, stating
“We have no doubt this would confirm that APD’s negative effect on UK GDP significantly outweights its revenue benefit for the treasury.”
Strong words.
Mike Carrivick, CEO of Board of Airline Representatives in the UK: has also spoken out saying
“(the) Treasury has either deemed matters too complex or that changes would disadvantage others – in that case why bother consulting”
also stating that the Treasury of “completely ignored” the opinions of those in the aviation and travel industry and “digging its head in the sand over what it knows is a flawed tax”.
Ouch. There’s also a stark warning from BAR:
“The excessive increases in APD continue to discriminate against air travellers and will provide the resolve for the industry to seek meaningful change.”
I think we all know when a government has a chance for extra revenue for pracilcally doing nothing, it’ll take it. With APD income at £2.5 Billion, this is easy money.
So those rates in full:
| 2011 Economy | 2011 Premium | 2012 Economy | 2012 Premium | |||||||
| Band A | 0–2,000 miles from London |
£12 | £24 | £13 | £26 | |||||
| Band B | 2,001–4,000 miles from London |
£60 | £120 | £65 | £130 | |||||
| Band C | 4,001–6,000 miles from London |
£75 | £150 | £81 | £162 | |||||
| Band D | over 6,000 miles from London |
£85 | £170 | £92 | £184 |
These rates are effective from the 1st April 2012. If you book a ticket now and your travel falls after the APD rate rise, you are liable for the new rate of APD.
Should you wish to vent your frustration at the Chancellor of the Exchequer and his flunky Chief Secretary to the Treasury, the addressed you need are:
Rt Hon George Osborne MP
Chancellor of the Exchequer
HM Treasury
Horse Guards Road
LONDON SW1A 2HQ
Or
Rt Hon Danny Alexander MP
Chief Secretary to the Treasury
HM Treasury
Horse Guards Road
LONDON SW1A 2H
With the Olympics coming up in the summer, this should be an amazing windfall for the British Government, and an awesome opportunity to screw the world.
It’s just the current administrator making a land grab on an easy target. Sadly, nothing new.
I have cut down on my trips to the UK and hold more meetings in Europe.
Myself, I’m short hopping to other “Friendly” countries with lower rates of APD (eg Ireland at €3, Germany at a lower variable rate), and paying only the lowest APD possible.
It’s going to damage the UK, but it seems the current administration are hell bend on doing that anyway…