UK Government releases 2012 Budget; APD confirmed to increase

UK's Government released (21-Mar-2012) its 2012 budget, in which it confirmed the proposed increases to Air Passenger Duty (APD) will go ahead. Effective from 01-Apr-2012, APD will increase 8% and will increase again in 2013. In his budget release address, Chancellor George Osborne noted the country's restricted airport capacity, stating, "this country must confront that lack of airport capacity in the south-east. We cannot cut ourselves off from the fastest growing cities in the world". Specific details of whether a third runway at London Heathrow Airport would be the solution or construction of the proposed Thames Estuary Airport were not detailed. [more - original PR - Budget 2012]

• APD: easyJet, British Airways, Ryanair and Virgin Atlantic criticised (21-Mar-2012) the UK Government's plan to move ahead with increases in the APD, stating it will cost jobs and reduce economic growth in the country. The Board of Airline Representatives (BAR), which represents 80 airlines, called for the rise to be cancelled and the current rate of APD to be reduced; [more - original PR - airline comments] [more - original PR - BAR UK]
• APD: Peel Airports, owner of Liverpool John Lennon Airport and Doncaster Sheffield Robin Hood Airport also criticised (21-Mar-2012) the APD increases, stating the Government "turned its back on an industry that has the ability to help kick-start regional and national economies"; [more - original PR - Peel Airports]
• Airport capacity: KPMG welcomed (21-Mar-2012) the Government's plans to address the lack of airport capacity in the Southeast of England, stating it is essential for the UK's continuing economic recovery. [more - original PR - KPMG]