United Kingdom

The Air Charter Association responds to Government's increase in APD for bizjet users

Following the UK Government's Budget presented on October 30th 2024, Glenn Hogben, CEO of The Air Charter Association (The ACA), issued a statement regarding the increase in air passenger duty (APD) for business jet users.

The ACA is encouraging the government to engage with the aviation community to fully understand the value that the business air charter industry contributes to the UK economy and to help them understand that increasing tax in this specific sector will only stifle growth rather than support it:

Glenn Hogben "The UK already charges the highest rate of Air Passenger Duty (APD) in Europe and this is one of the fastest growing of all UK taxes. Raising this tax further makes the UK increasingly uncompetitive as a destination and place to do business, which post-BREXIT UK aviation businesses are already grappling with.

The government’s decision to disproportionally increase APD on business jet flights by up to 70% overlooks the significant value of business aviation and could ultimately lead to reduced tax revenues over time.

“Business jet charter flights are valuable business tools that enhance efficiency and support growth across industries. The business air charter sector plays a crucial role in ensuring the UK remains open for business and competitive on the global stage and is essential for fostering innovation and driving competitiveness within UK businesses. A good proportion of these charter flights provide vital medical, cargo and humanitarian support and regional connectivity where scheduled flights do not exist. The economic activity generated by the sector contributes significantly to GDP, tax revenues, and the overall health of the national economy.

“Smaller charter operators, vital to the aviation sector, will face disproportionate challenges in adjusting to these changes. With tight margins and price-sensitive clients, they will struggle to maintain their business in the UK, which would result in the loss of jobs and revenue to UK business, and ultimately lower tax income. The growth of our future industry talent is often driven by these smaller businesses and the impact of this significant increase in cost will magnify staffing shortages in the future. What’s more, the increased costs could deter certain clients from travelling to regional destinations in the UK, reducing key investment in these areas.

“We encourage the government to engage with us to fully understand the value that the business air charter industry contributes to the UK economy and to help them understand that increasing tax in this specific sector will only stifle growth rather than support it. The Air Charter Association will participate in the government consultation, open until 22nd January 2025, alongside other industry bodies to advocate for the value of our industry."

The ACA will be participating in the government consultation, open until 22nd January 2025, alongside other industry bodies to advocate for the value of our industry.