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Air Passenger Duty freeze a blow to north's political leaders and business community

The Budget confirmed there will be no change in the APD rate for short-haul flights in Northern Ireland
The Budget confirmed there will be no change in the APD rate for short-haul flights in Northern Ireland The Budget confirmed there will be no change in the APD rate for short-haul flights in Northern Ireland

THE UK Government has ignored calls from the north for the abolition of Air Passenger Duty (APD).

In his Budget yesterday, Chancellor Philip Hammond said there will be no change in the duty rate for short-haul flights from April 2020, but a technical working group will be established to consider a possible future alteration to the Northern Ireland rate.

The news comes as a blow to the leaders of the north's five main political parties, who jointly penned a letter this week to Theresa May calling for an end to the travel tax, which adds £26 to a domestic return flight from local airports.

In the correspondence signed by Arlene Foster, Michelle O’Neill, Robin Swann, Colum Eastwood and Naomi Long, they stated that the removal of APD "would provide an economic boost for Northern Ireland in the tourism and aviation sectors".

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In the Budget document it states the decision to make no changes "at this time" to the Tourism VAT or APD rates is in response to evidence presented.

"The government will continue to explore ways to support a successful and growing tourism industry. In particular, establishing a technical working group to consider the practical and legal challenges to changing short-haul APD in Northern Ireland," the publication says.

Chief executive of Hospitality Ulster, Colin Neill said they are "disappointed" in a lack of movement on APD, but "hopeful" a technical working group can help effect change.

"Our airports have to compete internationally, and with the likes of Dublin airport only 100 miles down the road we have to pull every economic lever available to us when it comes to air travel. No change means that we continue to face the difficulties this tax presents," he said.

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In relation to the current 20 per cent Tourism VAT rate, Mr Neill said he is "dismayed" the Chancellor failed to address the issue.

"It is imperative that the rate is cut in Northern Ireland so we can continue to grow a vital part of the regional economy. The hospitality sector is an engine for growth and we can no longer suffocate it. This is a live and real problem which is crippling trade," Mr Neill added

Business groups in Northern Ireland have long petitioned for the abolition for APD and earlier this year an independent report claimed that 40,000 new jobs could be created in the north over the next 30 years if APD was removed from flights serving the region, delivering an increase in Gross Value Added of £2.7bn.

Air Passenger Duty freeze a blow to north's political leaders and business community
Air Passenger Duty freeze a blow to north's political leaders and business community