Hope for region as air tax gets a rethink
Dec 23 2010 by Rob Pattinson, The Journal
A BID for fairer taxation of North East air travel has received a major boost after the Government indicated special rates for the regions could be introduced.
UK minister of state for aviation Theresa Villiers said the Government was considering raising Air Passenger Duty (APD) on flights from congested South East airports, instead of applying a one-size fits all solution across Britain.
The move towards a differential levy comes after The Journal launched our A Tax Too Far campaign, highlighting the disproportionate impact APD has on regions like the North East.
It had been feared airlines might pull out of destinations such as Newcastle International Airport if the tax hikes and subsequent ticket price increases meant the number of passengers flying from the region fell.
Aviation bosses in the North East last night claimed the rethink was a significant step forward and praised our campaign for forcing the issue on to the coalition’s agenda.
Business chiefs who believe strong air links are crucial for the recovery and long-term success of the North East economy also welcomed the news.
Ms Villiers told the New Direction for Aviation Policy conference in London: “It is not inconceivable that our tax reform might look at a higher tax to fly from congested South East airports.”
She said charging a higher rate to fly from airports in the South East, such as Heathrow or Gatwick, would create more of a balance between these airports and the UK’s regional airports.
She added: “A key part of our approach is to create conditions for regional airports to flourish, and this also has the potential to help relieve overcrowding at south east airports.”
The Government had been threatening to introduce a per-aircraft tax in place of APD earlier this year.
Newcastle Airport’s planning and corporate affairs director Graeme Mason tentatively welcomed the idea of a differential levy, which would allow the Government to earn its money from the busier, richer airports close to London, without taking business away from the regions.
