Budget 2011: APD grounded

A ray of sunshine for campaigners and travellers came with the Budget Statement that the proposed increase of Air Passenger Duty (APD) departure tax will be delayed until April 2012.

Chancellor George Osborne announced that instead of the proposed commercial traveller duty increase, the Government may now seek to impose a tax rise on private jets whose passengers currently pay no duty.  

A sustained campaign by Caribbean governments, UK organisations and MPs including Diane Abbott and Chuka Umunna has helped to put pressure on the Government's decision.

Mr Osborne said that the Government was consulting on reform of APD told MPs that APD assumed that the Caribbean was further away from the UK than California.

Chuka Umunna MP for Streatham, said of the Chancellor's decision to postpone the tax: “It is welcome that the Chancellor acknowledged the depth of feeling about this topic in my constituency and others with large Caribbean diaspora communities by referring to the issue in his annual budget statement.

“However, the Chancellor said the government would consult on the anomalies thrown up by the application of Air Passenger Duty to the Caribbean but the time for consultation is over - we have been talking about this issue for a long time now; what the community wants to see is action to eradicate the unfairness of the current setup now.”

Facillitators for a Better Jamaica (FFBJ) who have campaigned alongside the Caribbean Council and Caribbean High Commissions to raise awareness of the unfair tax increases said that they are pleased with the Chancellor's decision to freeze  the duty until 2011. Stating that:"While we feel that the news on APD is a positive one the Chancellor has not gone far enough.  

"We have being lobbying for a complete overhaul of the tax increase but we welcome the Chancellor's  acknowledgement that the banding system used to calculate the level of APD sees travellers to the Caribbean paying more than those  travelling to California, which he says would have to be improved".

FFBJ added that:  "Our job at FFBJ is to continue to lobby the Chancellor for a complete eradication of the APD.  We therefore still need our communities to help us lobby MPs and the Government to accomplish this".

The tax was first introduced in 1994, and has been increased on a regular basis, with rates up as high £170 per extra per passenger last November for those going to destinations like the Caribbean.