APD to be increased?

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Given that a great number of people use short-haul flights to visit the UK this could have a significant impact on the tourist industry here, not to mention the impact that it would have on those of us wishing to take a holiday abroad. 

An independent report published by Frontier Economics has concluded that the Government’s proposed changes to the APD tax would reduce passenger numbers to and from Britain by three million per year and consequently tourist spending in the UK would decrease by £475 million per year. This in turn would reduce the UK's GDP by £2.6 billion per year and lead to up to 77,000 jobs being lost.

Since 2007, APD on short-haul flights has risen by 140% and there are therefore calls for any further taxes to be imposed on a per plane basis rather than increasing the burden on passengers again. Whilst taxes on planes could in theory provide an incentive for airlines to be more efficient, it could however lead to a reduction in service levels and ultimately a higher ticket price for travellers.  

Joanna Catterall
Solicitor, Clinical Negligence and Claims Abroad team

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