Parliamentarians call for temporary suspension of APD to boost aviation recovery
A cross party group of parliamentarians have today backed a call for a temporary suspension of air passenger duty to prevent a complete collapse of the aviation industry, and to protect regional connectivity.
The letter was organised by the APPG for the Future of Aviation and is signed by 29 parliamentarians including Conservative MPs Henry Smith, Steve Brine and Crispin Blunt along with DUP Westminster Leader Sir Jeffrey Donaldson MP, as well as representatives from Labour, the Liberal Democrats, SDLP and Alliance parties.
It comes after the announcement of a ban on outbound international travel which will effectively shut down travel leaving airlines and airports as closed businesses.
Commenting Henry Smith MP, Chair of the APPG for the Future of Aviation said:
“Our aviation industry has been amongst the hardest hit by the pandemic and has faced this brutal reality without the levels of support afforded to other sectors and it is high time the Government brought forward a full package of support measures.
“This must include a twelve-month suspension of air passenger duty as soon as international travel resumes. We risk holding back our aviation sector and wider economic recovery by continuing to levy the highest aviation taxes in the world.
“With our aviation industry on its knees, we should be cutting aviation taxes to get Britain flying again by suspending this tax on recovery. We cannot have a full economic recovery without a thriving aviation sector and the consequences of failing to act are unthinkable.”
The full text of the letter is below:
Dear Chancellor,
Get Britain Flying Again by suspending Air Passenger Duty for 12 months
Since the COVID-19 pandemic hit earlier this year, few industries have experienced as much disruption as the UK’s world-class aviation network – the third largest in the world and the biggest in Europe. Passenger demand was down by 70% in August 2020 compared to August last year, and over 30,000 industry jobs are either lost or at risk. With passenger numbers down to levels not seen in thirty years, this has been the worst crisis the industry has ever faced.
Although other industries facing difficulties like hospitality have received tailored Government support, aviation has so far only been able to draw on the measures available to all businesses, despite being one of the worst-hit in the country. Without additional Government intervention, the New Economics Foundation predicts up to 124,000 jobs will be lost in the aviation industry and its supply chains.[1]
To prevent a complete collapse of the industry, and to protect regional connectivity, we are calling on you to suspend Air Passenger Duty for 12-months to Get Britain Flying Again.
A recent study by York Aviation shows that a 12-month suspension of Air Passenger Duty could save almost half of UK air routes that would otherwise be lost due to COVID-19, result in 21 million additional passengers travelling though UK airports, save 8,000 jobs, and contribute £7 billion in GVA – more than three times the revenue that would be generated by keeping the tax.[2] In short, suspending Air Passenger Duty will:
1. Protect regional connectivity, by saving 45% of otherwise-lost routes in the UK and protecting transport links in under-served areas of the country[3];
2. Get Britons travelling again, by giving hardworking families an incentive to take previously postponed holidays and helping make key routes viable to operate again
3. Get Britain trading again, as over 60% of UK air freight comes in the hold of passenger planes and operating additional flights will pay dividends for UK trade[4].
A strong UK aviation sector is at the heart of a strong UK economy, and so needs to be a cornerstone of Britain’s post COVID-19 recovery as well as our post-Brexit future as a global and connected nation. It is economic measures such as the suspension of APD that in tandem with an accurate testing regime will be key to making routes viable again and supporting the recovery of this crucial sector.
Given the dire economic forecast ahead for the industry, we would welcome the opportunity to meet with you urgently to discuss how these measures will protect jobs and connectivity across the UK.
Yours sincerely
Henry Smith, Member of Parliament for Crawley and Chair of the APPG for the Future of Aviation
Crispin Blunt, Member of Parliament for Reigate
Andrew Bridgen, Member of Parliament for North West Leicestershire
Steve Brine, Member of Parliament for Winchester
Sir Jeffrey Donaldson, Member of Parliament for Lagan Valley
Allan Dorrans, Member of Parliament for Ayr, Carrick and Cumnock
Richard Drax, Member of Parliament for South Dorset
Colum Eastwood, Member of Parliament for Foyle
Dr Stephen Farry, Member of Parliament for North Down
Yvonne Fovargue, Member of Parliament for Makerfield
Rt Hon Sir Roger Gale, Member of Parliament for North Thanet
Paul Girvan, Member of Parliament for South Antrim
Christine Jardine, Member of Parliament for Edinburgh West
Simon Jupp, Member of Parliament for East Devon
Pauline Latham OBE, Member of Parliament for Mid Derbyshire
Emma Lewell-Buck, Member of Parliament for South Shields
Jonathan Lord, Member of Parliament for Woking
Tim Loughton, Member of Parliament for East Worthing & Shoreham
Mark Menzies, Member of Parliament for Fylde
Sheryll Murray, Member of Parliament for South East Cornwall
Ian Paisley, Member of Parliament for North Antrim
Laurence Robertson, Member of Parliament for Tewkesbury
Gavin Robinson, Member of Parliament for Belfast East
Andrew Rosindell, Member of Parliament for Romford
Virendra Sharma, Member of Parliament for Ealing, Southall
Mohammad Yasin, Member of Parliament for Bedford
Baroness Harris
Lord Rogan
Lord Rowe Beddoe
[1] New Economics Foundation, Crisis Support to Aviation and the Right to Retrain, (June 2020)
[2] York Aviation, The Demand and Connectivity Impact of a 12 Month Air Passenger Duty Waiver (July 2020)
[3] Ibid, 4.3
[4] Steer, Assessment of the value of air freight services to the UK economy, (October 2018)