Minsters urged to put APD abolition ‘back on the table’ to respond to devolution to Scotland

September 8th, 2015

The British Air Transport Association (BATA) has today called on the Government to abolish Air Passenger Duty during this Parliament in its response to a Treasury consultation on APD devolution.

The Treasury paper, published on the day of the Summer Budget in July, set out three options for supporting English regional airports from the impacts of Air Passenger Duty devolution to Scotland and potentially Wales.

The three options have been rejected by UK airlines due to their significant flaws, questionable legality and a failure to tackle the fundamental problem of UK APD being the highest tax on flying in Europe and one of the highest in the world.

Commenting on BATA’s submission, Chief Executive, Nathan Stower, said:

“The Scottish Government’s commitment to reduce the burden of APD by 50% from 2018 is great news, but it creates a new inequality for passengers living right across the UK and a competitive challenge for England.

“The Treasury is right to recognise that devolution will require a policy response in England, but the options in their paper are simply inadequate. Passengers living in London and the South East should not have to pay more tax to fly for business or leisure than passengers living in Scotland, Wales or any other region in England for that matter.

“Luckily there is still time to put other options back on the table for consideration, including abolition and significant reductions of UK APD, that would be fairer to passengers across the UK and improve international competitiveness.”

 

 ENDS

8 September 2015