Government confirms APD devolution to Scotland
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The government has confirmed Air Passenger Duty will be devolved to Scotland, prompting ABTA and the Airport Operators Association (AOA) to ask for consistency across the UK.
A report issued today (22 January) follows recommendations put forward by the Smith Commission following the referendum in September.
It is likely the devolution will lead to Scotland scrapping the controversial tax.
ABTA’s chief executive Mark Tanzer warned it could hinder airports in the north of England where passengers would still have to pay the fee.
“Future reductions in APD planned by the Scottish Government will be good news for passengers flying from Scotland and for Scottish airports and travel businesses; but this will come at a cost to the competitiveness of regional airports in the north of England, and to consumers elsewhere in the country who will be paying some of the highest flight taxes anywhere in the world,” said Tanzer. “ABTA is calling for the UK Government to ensure that rates of APD are consistent and competitive across the UK. A cut in one part of the UK is unacceptable and the most competitive rate should be matched for the benefit of the whole of UK plc and all UK consumers.”
AOA’s chief executive Darren Caplan shared the same view.
“It is of course a matter for the Scottish government to decide whether to reduce APD for passengers travelling out of their respective airports, once they are granted the necessary powers, and they should be commended for taking the view that they will ultimately be better off without this damaging tax. However, in the interests of fairness it cannot be right that one part of the UK is able to levy a substantially reduced rate of APD compared to other areas, thus disadvantaging not only our airport members but companies and travellers too,” he said. “We continue to take the view that a cut anywhere should be matched, immediately, by a cut everywhere. We respectively call upon the main UK political parties to work together to publish a plan, before the general election, setting out how this will be delivered.”
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