Labour faces backlash over calls to reverse slashing of air taxes

Labour faces backlash over calls to reverse slashing of air taxes amid cost of living crisis

• The planned tax cut means the levy on domestic flights will fall from £13 to £6.50
• But Labour branded the cut ‘baffling’ and a ‘failure to spend public money wisely’

Labour was condemned yesterday for wanting to hike air taxes on holidaymakers amid the rising cost of living.

Ministers tore into the Opposition after it called on the Government to reverse cutting Air Passenger Duty on domestic flights in half.

They warned it would collectively clobber 9million passengers by tens of millions of pounds, hit economic growth and regional airports across the UK.

The tax cut, to be introduced permanently under the Finance Bill, means the levy on domestic flights will fall from £13 to £6.50.

The aim is to support holidaymakers amid the soaring cost of living and give the economy and regional airports a much needed boost after being ravaged by the Covid-19 pandemic.

But Labour yesterday branded the tax cut ‘baffling’ and suggested it would reverse the measure if it wins the keys to Downing Street.

Labour was condemned yesterday for wanting to hike air taxes on holidaymakers amid the rising cost of living (pictured: planes and terminal buildings are seen at Manchester Airport in Manchester, Britain, 11 June 2023)

The party’s shadow financial secretary to the Treasury, James Murray, told the Commons during a debate on the Bill that the tax cut to help support hard-pressed families ‘cannot be the right priority for spending public money’.

He added that it was ‘baffling’ and represented a ‘failure to spend public money wisely’.

But Financial Secretary to the Treasury, Victoria Atkins, hit back, saying: ‘When so many families are struggling with the cost of living, it’s shocking to see Labour oppose this tax cut which would support 9million passengers across the UK.

‘While we are helping families with the cost of living with £94billion of support, Labour are playing politics, with hard working people left to pick up the tab.’

A Treasury source added: ‘Don’t bother taking family trips to Cornwall, the Highlands or Causeway under Labour – they’ll tax you to high heaven.

‘Not only would Labour’s air duty hike hit customers in the pocket, it would choke off regional airports and clobber our tourism sector. It’s pure madness.’

Treasury analysis has indicated that the cut will benefit around 9million passengers and have huge economic benefits to the entire UK.

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Based on Civil Aviation Authority data from 2019, more than 53 per cent of passengers from Aberdeen, Belfast City, Belfast International, Inverness and Southampton were travelling direct to domestic destinations. Similar levels of passengers travel domestically from other hubs.

The row comes after Labour was told by its trade union backers that its policy on banning all new oil and gas exploration in the North Sea would cost thousands of jobs.

APD on domestic flights fell from £13 to £6.50 on April 1 but the Finance Bill must be passed to put the measure onto a permanent footing.

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