THE Journal’s campaign against an unfair air tax on the region has been given top billing in the consultation on the levy ordered by the Chancellor.
Details of the consultation on air passenger duty (APD) show the disproportionate impact on regional airports will be one of the five key areas looked at for reform by the Government.
Aviation chiefs from the region say recognition of the imbalance between the main South East airports and smaller regional hubs is a significant step forward, but have warned there is still much work to be done on mitigating its effects.
A section of the consultation paper reads: “As part of the present consultation, the Government welcomes views on the impact of APD on the UK’s regional economies.
“The Department for Transport’s forthcoming work to develop a new aviation policy framework also provides an opportunity to explore the broader role of transport policy in promoting more balanced growth and development across the UK.”
Newcastle International Airport has already announced its plan to play a leading role in the Government’s consultation with regional destinations.
Its position at the forefront of industry calls for reform was confirmed last week when transport minister Theresa Villiers chose to visit the airport the day after George Osbourne’s budget.
The airport’s effort has been backed by business chiefs, who believe allowing the airport to flourish will be key to developing the North East economy.
Bosses at Newcastle Airport have said they hope to have a finalised position on the matter by the end of April. The consultation will close two months later in June.
Newcastle Airport has already said it plans to make its website available for posting of opinion and statements of support.
Graeme Mason, planning and corporate affairs director at the airport, said: “Now that we’ve seen the consultation document and considered its content we are very pleased to see that one of the five questions relates entirely to regional impact.
“The document considered what the effects of APD have been on regional air services and asks the question should the rate be varied between airports in the South East and regional airports, such as ours.
“This represents an opportunity for the region to galvanise our efforts and make the case for such regional variations, which we have always said will stimulate the growth of regional services and will support the expansion of international businesses.”
A triple victory was claimed by the Journal’s A Tax Too Far campaign, in the wake of George Osbourne’s budget, last Wednesday.
The Chancellor announced a freeze in the rate of APD for the next 12 months, confirmed a per-plane tax would be scrapped and formally launched the consultation on reform of APD.
Business leaders also welcomed the measures, which will address the levy, seen as a restraint on the region’s trade links.
Jonathan Walker, NECC export policy adviser, said: “The future of the UK economy lies in the competitiveness of our exports. The Chancellor’s planned increase in tax credits and capital allowances will allow manufacturers to both develop and produce exciting products. Changes to fuel duty will provide a boost to hauliers to help move these products on and the freeze in air passenger duty will undoubtedly assist businesses seeking to break into new markets.”