Air Passenger Duty

David Lammy Excerpts

Wednesday 23rd October 2013 Commons Chamber

[Sammy Wilson]

I do not want to get into the complexities of how APD is calculated, but anyone with just a basic knowledge of geography knows that the Caribbean is closer than California, yet California is regarded as closer in terms of calculating APD. Even here there are anomalies that have regional impacts.

[Mr David Lammy (Tottenham) (Lab)]

Have the Northern Irish been able to forge any solidarity with the small nations in the Caribbean that are suffering in this way? The hon. Gentleman will recognise that there are many British citizens of Caribbean background and, as they are certainly not the country’s richest citizens, many of them cannot afford, as a family of four, £332 extra in APD to fly back to the Caribbean on a once-in-a-lifetime trip.

[Sammy Wilson]

The right hon. Gentleman makes an important point. Although this tax is regarded by some as a tax on the rich and therefore a progressive tax, it is not: it is a flat-rate tax and therefore it is a regressive tax. Many of those who are hit are travelling on holidays or to see their families, and they save up for that even though many of them are on low incomes. Indeed, 45% of those who are hit by it would be regarded as being on medium or below-medium incomes, yet they pay the same tax as those earning more than £80,000. Leaving aside the impact on growth, on exports and on industry, the regressive nature of the tax makes it an unfair tax, and that is another reason this issue needs to be looked at.

--- Later in debate ---

[Nicky Morgan]

I welcome the hon. Gentleman’s suggestion and I will certainly think about it. My earlier remarks hinted at the existence of the Airports Commission, which will look at all the UK’s airports, the role they play for travellers and how we deal with those who come here by whichever means.

[Mr Lammy]

On the Minister’s broader point, it is incredibly interesting to hear a Conservative arguing at the Dispatch Box that the highest taxation of this sort in the world is necessary. Is that consistent with the hon. Lady’s position in Loughborough?

[Nicky Morgan]

I thank the right hon. Gentleman for his remarks. As a Conservative, I believe in the lowest tax possible, but I also believe in running the economy as responsibly as possible, meaning that what we get in, we spend out. That was put out of kilter by the legacy of the previous Government. We have been very clear about the reason for APD and the role it plays. We cannot choose to ignore £3 billion when we have to deal with the deficit and legacy left to us by the previous Government, of which the right hon. Gentleman was at times a member.