The holiday season is of course well underway and I am pleased to report significant changes to Air Passenger Duty (APD). While not a complete abolition, the reforms will certainly give taxpayers in Crawley a break.
APD is a tax paid by airlines which is typically passed onto customers. It is banded on the distance from the UK to a country’s capital city, with a reduced rate for economy class passengers.
George Osborne, in his Budget this year, announced that the cost of long-haul travel (travelling more than 2,000 miles) will fall to a uniform rate, rather than the current system of three separate categories.
Whilst I continue to campaign for the end APD, I do believe that this is a good step in the right direction. These measures will see costs come down. For example, a family of four travelling in economy long haul to, visit relatives or go on holiday, will save £56.
This is important not only for Crawley people but also the many airline and holiday companies that are based locally and support our economy as well as employment.
This reduction in APD is another example of how this Government is supporting holidaymakers and business commuters. Last year, the Government announced it would invest £53 million into improving the rail service at Gatwick Airport, for local commuters as well as air passengers.
Recently, I was at the airport to help announce a growth deal for the Crawley-centred Coast to Capital enterprise region. This will be worth over £200 million over six years, including an initial investment of £44 million.
The majority of passengers who fly from this country are going to destinations within the UK and Europe, and the economy flight duty rate will remain unchanged at £13. By the end of March 2016, it would have remained frozen for four years.
The previous Government inherited a very modest APD and over time significantly increased the rates, particularly for long-haul travel. The Chancellor recognised this problem by delivering a temporary one year freeze and limiting rate increases to inflation since taking office. While these actions are welcome, I know we can do more.
I have discussed this matter with Prime Minister, and the next time I see him I want to give him your views. Please let me know your opinions on this issue by writing to me at the House of Commons, London, SW1A 0AA, or by emailing me directly on henry.smith.mp@parliament.uk