The Treasury hopes to recoup about £2.6 billion from the tax in 2011-12, up from £2.2 billion during the previous financial year.
The announcement is a grave disappointment to holidaymakers, more than 70,000 of whom have signed Telegraph Travel’s petition calling for the tax to be scrapped.
In a joint statement, Carolyn McCall, Michael O’Leary and Willie Walsh, the chief executives of easyJet, Ryanair and IAG, respectively, condemned the Government’s decision.
“In the cause of UK economic recovery, APD is an own-goal and the Chancellor has just scored another one,” they said. “By increasing this tax by double the rate of inflation, he is further deterring inbound tourism and foreign investment, and choking off yet more job opportunities for young people.”
Simon Buck, the chief executive of the British Air Transport Association, said that the whole economy would slow down if people were not able to travel at reasonable prices.
“Passengers departing from UK airports already pay the highest taxes on flying in the world and this further increase will do nothing to support the Government’s aspiration to grow UK tourism and support British jobs.”
Airlines are already struggling to cope with a carbon tax, the EU Emissions Trading Scheme, which was imposed in January.
Mark Tanzer, the chief executive of ABTA, which represents the travel industry, said smaller tour operators and tourism businesses were under threat, and said the duty also punished any British families who chose to travel abroad.
“The Government has repeatedly said it looks to travel and tourism as one of its key drivers of growth but instead of listening to concerns that APD is stunting this growth, not only in travel but in the wider economy too, it has chosen to significantly increase the tax burden.”