Abolishing air tax in Scotland could 'damage' the rest of Britain

Abolishing air tax in Scotland could 'damage' the rest of Britain
Air Passenger Duty has risen six times in as many years

Scottish MPs could be given the power to scrap Air Passenger Duty (APD) north of the border under new devolution proposals.

The Smith Commission – set up by David Cameron following the referendum on Scottish Independence – recommended that control over air tax be handed over to Holyrood.

Travel firms in Britain reacted to the news by urging the Government to consider scrapping or reducing air tax across the whole of Britain, claiming that any inconsistency between the level of APD paid by travellers in different parts of the country could be damaging for travel businesses.

“[Giving] the Scottish Parliament full power over APD could have a significant impact across the whole of the UK,” said Abta, the travel association.

“Any inconsistencies between what a passenger pays flying from Scotland compared to elsewhere in the UK could create an uncompetitive and damaging situation for travel businesses. Abta has welcomed that the Scottish Government has recognised the damaging impact this tax is having on jobs and growth, as well as on consumers. We now urge the UK Government to review the level and impact of this damaging tax with a view to reducing it across the whole country.”

As well as attracting more airlines to the country, making it easier for Scottish holidaymakers to reach more destinations, abolishing APD would make air travel a far more affordable proposition for those flying from airports in Scotland. APD adds £69 to the cost of a flight to the US, for example, meaning a family of four flying to Florida would save £276.

Such savings could also persuade families in the north of England to fly from Edinburgh or Glasgow, rather than – say Newcastle, Manchester of Leeds-Bradford. Earlier this year Graeme Mason, planning director at Newcastle Airport, expressed fears that the airport could lose thousands of passengers should Scotland scrap air tax. “Customers are very mobile,” he told the BBC. “They’ll shop around for the cheapest flight and they’ll travel quite long distances to get those flights.”

Should such a scenario ensue, the UK Government could subsequently be persuaded to cut air tax at some of Britain’s northern airports as it did in Belfast, after fliers began heading to Dublin for their transatlantic flights.

Last week it was reported that the Prime Minister has given his backing to proposals to scrap APD on flights for children under 12.

The move, tabled in an Early Day Motion (EDM) earlier this month and currently being considered for inclusion in the Chancellor’s Autumn Statement on December 3, would save a family of four up to £194 each time they fly from Britain.

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