14/03/11
By Andrew Holt
Key Travel, a supplier of travel to the not-for-profit sector, is warning that charities could be particularly hard hit by a ‘triple whammy’ of rising fuel costs, increased taxes and a drop in income.
Airlines and travel organisers are currently lobbying the Chancellor to freeze a planned increase in Air Passenger Duty (APD), which will bring in £2.2 billion in 2011.
The Government has stated that it plans to bring in an extra £1.4 billion through APD by 2015.
Added to this, fuel prices recently reached a two and a half year high and, with charities struggling in the current economic climate, Key Travel warns that the charity sector faces a “triple whammy” of increased taxes and fuel prices while incomes are dwindling.
Travel is essential to the work of many international charities and NGOs and Key Travel warns that their operations could be hit as spending on travel rises.
Steve Summers, chief executive of Key Travel, said: “It is a very tough time for the charity sector with public sector spending cuts taking hold and income from donations drying up. Increasing travel and fuel costs will be a triple whammy blow to the sector.
“Travel is essential to the work of not-for-profit organisations and any increase in costs is likely to hit this charity sector particularly hard. Charities with operations overseas spend thousands, even millions, of pounds on travel each year and rising travel costs may force charities to scale back their work."
Paul Butler, operations manager for Habitat for Humanity, added: “We fear that some charities could be forced to scale back on their work if it becomes more expensive to get people out to the projects they support.”
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