20 January 2011
Speaking at a Parliamentary debate, Economic Secretary to the Treasury, Justine Greening, confirmed that Air Passenger Duty (APD) would be reformed but warned that ironing out some of the discrepancies in the banding system would be difficult to achieve. She indicated that the duty would be reformed to pay greater attention to the environmental impact of aviation as well as fiscal conditions.
Strong ties between the UK and Caribbean countries were of great importance to the Government, Ms Greening insisted, noting that stakeholders from the Caribbean community would be involved in discussions on APD reform. However, she warned that tackling the fiscal deficit would remain a fundamental concern for the new few years.
Refusing to comment directly on the June Budget, the Conservative Minister stressed that any reforms to APD would be subject to consultations and draft legislation before changes were agreed.
Bringing the debate, Labour MP, Diane Abbott, expressed concerns that APD imposed far higher costs, and had received far greater increases, for travel to the Caribbean than to the US. It was having a negative effect on British business and could not be argued to be an environmental measure since it did not apply to private planes, she argued. There were a range of factors which were ignored when setting these rates, demonstrating that it was not an equitable charge, she claimed.
Sourced from Dehavilland