Airport Passenger Duty has been removed for children under 12, Heathrow Airport has welcomed the change, but demanded further cuts.
In a statement, the Airport said that any reduction in air passenger duty (APD) “is to be welcomed”, and was a reminder of the economic benefits of removing barriers for travel.
The current levels of APD make the UK government around £3bn each year. But the Airport argues that the revenues from inward investment, exports and tourists spending their money in the UK dwarf this figure by comparison. Some European countries have frozen, reduced or scrapped APD over the last decade, while the UK has continued, until recently, to increase this tax burden.
Heathrow thinks this has made the UK less competitive as a country and less attractive as a destination for tourists, investment and trade. Heathrow, along with other airports across the country, have campaigned for a review of APD – citing evidence from economic analysts who show the wider benefits to the economy from increased competitiveness are far greater than the revenue generated by the tax.
John Holland-Kaye, Chief Executive of Heathrow Airport said: “I continue to believe that a reduction, moving towards abolition of APD across the country, will support the UK on the journey to long-term, sustainable economic growth. This is a valuable first step.”