Andy Burnham urged to make tax change – could slash costs for Brits | Politics | News
Andy Burnham has been urged to cut “very high taxation burdens” on the aviation industry, potentially bringing ticket prices down as a result. The boss of British Airways warned the new Prime Minister that action must be taken if he wants the sector to grow.
Speaking at the Farnborough Airshow in Hampshire, Sean Doyle said: “We have very, very high taxation burdens, whether it’s Air Passenger Duty (APD), whether it’s airport charges.
“If you want this sector of the economy to continue to grow and to add to the core objective of growth, you’ve got to make sure that we reduce the taxation burden because at the minute it’s higher than most other markets that we operate in.” APD rates depend on how long a journey is, with former Chancellor Rachel Reeves hiking them at the last budget in line with retail price inflation.
Costs can rapidly add up, especially for families jetting around the world on holiday. Travel expert Simon Calder said the new rates mean a family of four flying to Orlando, Florida, could pay over ยฃ1,000 in tax.
Yvonne Moynihan, managing director of Wizz Air, said failing to slash air tax risks cutting demand and deterring tourists, while the alternative could see ticket prices drop.
She told Sky News: “The UK already has some of the world’s highest aviation taxes, putting it at a disadvantage. We urge the government to work with the industry on fairer approach that protects affordability and strengthens the UK’s position as a global travel hub.”
Speaking in Farnborough, Mr Doyle urged the government to “understand the value of what we do” and support the sector’s ongoing “innovation and competitiveness”.
“They would be my two big asks: recognise our value and understand that we need to be competitive, and think about that when you think about any policy decision,” he said.
Ryanair CEO Michael O’Leary also hit out at the planned hike of APD last autumn, warning that it represented a tax of almost 33% on the airline’s average flight price.