Oral Answers to Questions

Lord Brady of Altrincham Excerpts

Wednesday 12th December 2012 Commons Chamber

[The Prime Minister]

I would take that from the hon. Lady if her plans were not to borrow even more. The point is—[Interruption.] I know that the Labour party was desperately disappointed that the Office for Budget Responsibility predicted that borrowing would come down this year as well as last year, but that is the fact.

[Mr Graham Brady (Altrincham and Sale West) (Con)]

Q10. The Prime Minister has rightly said that we are locked in a global economic race. Does he share my concern that having the highest aviation taxes in the world makes it harder for business to compete and increases the cost of living? Will he ask the Treasury to conduct a full review of whether aviation taxes cost Britain more than they bring in?

[The Prime Minister]

I very much understand the point that my hon. Friend makes. Obviously, I get lobbied regularly by countries around the world, particularly Commonwealth countries, about air passenger duty. We do not have any plans to commission further research at this point because we have just completed a very thorough consultation. Despite the challenge of the budget deficit, we have limited the rise in APD to inflation over the period 2010-11 to 2012-13. As a result, APD rates have increased by only around £1 for the majority of passengers, but I bear in mind very carefully what he says.