§ Matthew TaylorTo ask the Chancellor of the Exchequer what the reasons are for the change in projected revenues from(a) air passenger duty and (b) capital taxes since the Budget of 2001 shown in Table C8 of the Financial Statement and Budget report 2002; and if he will make a statement. [53405]
§ Mr. BoatengThe change in projected revenues for APD was announced in the pre-Budget report 2001. There are a number of reasons for this change. Last year's global economic slowdown had significant effect on passenger numbers and this was exacerbated by the tragedies on 11 September. There has also been a trend towards economy class travel to European destinations, which are generally charged at the lowest rate of APD. This is attributed in part to the success of the low cost airlines.
934WExplanations of the changes in forecast receipts for capital taxes since the Budget of 2001 are given in paragraphs B48 of the pre-Budget report, November 2001 and C45 of the Financial Statement and Budget Report, April 2002.