Airports voice their fury as the government cues up another raise in Air Passenger Duty

Published: 07:00 EST, 3 December 2012 | Updated: 07:05 EST, 3 December 2012

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A war of words is brewing over this week’s anticipated rise in Air Passenger Duty (APD), with airports claiming that the tax is hurting the UK as a destination – and the government suggesting that the travel industry’s protests are the real cause for concern.

Up, up and away: The government is expected to raise APD on Wednesday

The row comes in the build-up to the Chancellor’s Autumn Statement this Wednesday (5 December), when George Osborne is expected to announce a 2.5 per cent rise in the controversial levy – an increase that will come into effect from next April.

The hike will be the second time that APD has been upwardly adjusted in 12 months.

In April this year, the tax was raised by eight per cent – around twice the rate of inflation.

The air industry has reacted furiously to news of the latest increase, with the Airport Operators Association (AOA) releasing a study that suggests passenger numbers will fall as a result.

The survey saw 26 UK airports consulted for their opinion on the anticipated increase.

One in four airports say that they expect passenger numbers to fall by more than five per cent next year, and 73 per cent of airports declare themselves ‘very worried’ by the government’s plans.

Gatwick Airport blames the tax for the loss of a route to Kuala Lumpur, saying that carrier Air Asia X ceased its route to the Malaysian capital because of high APD levels.

Bristol Airport attributes similar cause to US operator Continental’s decision to abandon services to New York-Newark in November 2010.

Unhappy: London Stansted is among the airports to have voiced concerns

Stansted Airport has also voiced its anger.

‘The UK is now one of only six European countries still imposing this tax,’ says Nick Barton, the airport’s managing director. ‘And we charge twice the amount of the next most expensive country, Germany.’

‘Instead of increasing APD, the government needs to understand the damage this is doing to UK Plc, freeze the rate immediately and conduct an economic impact assessment.’

The government has been quick to head off protests ahead of Wednesday’s planned raise.

Hugh Roberston, the Minister for Sport and Tourism, has warned the travel trade that its vocal stance against APD is hurting the UK's image overseas.

‘When the tourism industry criticises APD, it is a message that goes abroad,’ he said. ‘We must put our best face in our shop window.’

His comments have provoked a swift response.

Simon Buck of The British Air Transport Association (BATA) – a member of the campaign group A Fair Tax On Flying – has countered Mr Robertson’s claims:

‘The minister says that Britain “must put our best face in our shop window” when it comes to selling the UK as a holiday destination overseas,’ he says.

‘We wholeheartedly agree.

‘However, the best way to encourage tourism would be to reduce the internationally unprecedented levels of APD – not take issue with campaigns that highlight the damage the tax is doing.’