A CALL for Chancellor George Osborne to scrap a tax on air travel in next month;s Budget has been backed by a local airport chief.
Tony Hallwood, aviation and marketing director at Leeds Bradford Airport, has welcomed a new airlines-commissioned report which says scrapping the Air Passenger Duty airport departure tax could create up to 61,000 jobs by 2020.
It also claims APD abolition would boost the UK economy, allow airlines to offer more routes and lead to a seven per cent increase in overseas visitors by 2020 .
Mr Hallwood said LBA had long called for APD abolition to bring the UK into line with other countries offering cheaper destinations to air travellers.
He said: "Leeds Bradford Airport supports to abolition of Air Passenger Duty which applies to business and leisure travellers both on departure from and arrival at UK airports, meaning they suffer a double hit.
"From an aviation standpoint, the UK is the most over-taxed country in the world and APD is hitting our competitiveness. Abolishing this flight tax would help to reduce air fares and generate more traffic, including at Leeds Bradford Airport, so boosting the regional economy."
The report by professional services company PwC, says more tax revenue would be raised from other taxes than is lost from scrapping APD. It is an update of a 2013 report produced by PwC for British Airways, easyJet, Ryanair and Virgin Atlantic.
The latest report said APD abolition could boost UK GDP by around 0.5 per cent in the first year, with continuing positive benefits up to 2020. The economy could be 1.7 per cent bigger by 2020 than if APD remained unchanged and output associated with abolition could lead to the creation of 61,000 new jobs by 2020.
APD abolition would generate a net £570 million in extra tax receipts in the first fiscal year, and positive benefits through to 2020 that could add up to as much as £2 billion additional tax receipts in total.
The boost to GDP would come in airline investment in new routes and maximising existing capacity to meet an estimated ten per cent increase in the demand for flights.
It would also lead to a seven per cent net increase in foreign inbound tourism passengers by 2020 - equating to approximately 200,000 extra inbound tourist arrivals in the UK.
APD raised more than £3 billion for the Exchequer in 2014/15. Although the highest rates of APD have recently been scrapped, as has APD for children under 12, two adults travelling on a long-haul flight are still paying a total of £142.
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