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Old 30th Oct 2009, 22:44
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Bruce Wayne
 
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APD - Tax on the Industry

The APD issue,which is, quite frankly, a governmental kick in the nuts to the UK Aviation Industry is matched by a Treasury slap in the face.

Flight taxes hiked to bail out banks: It's nothing to do with environment, says Darling


Flight taxes are being raised to help bail out the banks, Alistair Darling admitted yesterday.

In an extraordinary intervention, the Chancellor said the higher air passenger duty being introduced tomorrow was needed to plug gaps in the national finances.

He made no attempt to justify the move - which will add £340 to the ticket for a family of four flying long haul - on environmental grounds, the official reason for the tax.

Airlines warned yesterday that the tax would cost thousands of jobs and do nothing to combat global warming.

Addressing journalists in Newcastle, home of the failed bank Northern Rock, Mr Darling said: 'I am quite blunt about it, we need to raise money to pay for some of the things we have done.

'If unemployment goes up there is a cost obviously to the family, there is cost in increased benefits, Northern Rock has cost a lot of money.

What we are doing is putting a pound on to your average ticket, which about three quarters of people travel on.

'And you consider the cost of an air ticket, I don't think a pound is that unreasonable.

'In the North East, we have spent billions on a bank for very good reasons.
'If unemployment goes up there is a cost obviously to the family, there is cost in increased benefits, Northern Rock has cost a lot of money.

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