George Osborne has confirmed that the government is forging head with a planned hike to Air Passenger Duty (APD), which will take effect from next month.
The upcoming increase to the controversial flight tax will mean that a family of four will need to stump up to £376 in APD for every holiday getaway they make from a UK airport.
Mr Osborne’s announcement was quickly condemned by those in the travel industry, despite the chancellor’s assurances that he was “bringing business to our shores with competitive taxes”.
Darren Caplan, chief executive of the Airport Operators Association, said: “Recent World Economic Forum statistics showed we are now 139th out of 140 countries in the world for ticket taxes and airport charges (only Chad is placed lower).
“Only a handful of countries in the EU tax passengers on their international air travel at all – today’s announcement makes the UK even more internationally uncompetitive.”
Dale Keller, chief executive of the Board of Airline Representatives in the UK (BAR UK), added: “We have listened to much talk from the Government about the UK being in a global economic race and the importance for the UK to become more competitive.
“Yet airlines, among the most global of businesses; continue to be hammered by the highest aviation tax in the world.”
The rise in APD will mean that a family of four travelling in economy class this year will pay £52 in Europe (matching 2012 levels), and £268 to countries like the US, Canada, and Egypt (up from £260).
They will pay £332 to countries including Thailand and India (up from £324), and £376 to countries including Australia, Argentina and Singapore (up from £368).
The recently published 2013 TripAdvisor Flights Survey revealed that 77 per cent of respondents were in favour of scrapping APD altogether, while 27 per cent argued that the tax will impact on their travel plans this year.
“Flights make up a significant part of the cost of a trip and the results of this research reveal that the ever increasing cost of APD is becoming a real concern for British travellers,” said Emma Shaw, a TripAdvisor spokesperson.
