Tax on flying ‘helped us to maintain North jobs’

Oct 23 2009 The Journal

A TAX on flying has been defended as necessary to raise cash to pay for the rescue of Northern Rock.

Chancellor Alistair Darling spoke out as business chiefs have backed The Journal’s A Tax Too Far campaign, which is calling for air passenger duty (APD) to be frozen at current levels. Fears have been raised that the rising cost of APD will damage the regional economy.

Mr Darling said: “I am quite blunt about it, we need to raise money to pay for some of the things we have done.

“If unemployment goes up there is a cost obviously to the family, there is cost in increased benefits, Northern Rock has cost a lot of money.”

The Chancellor said he recognised the importance of Newcastle and Durham Tees Valley airports.

“But if you think about it, what we are doing is putting a pound on to your average ticket, which about three quarters of people travel on. And you consider the cost of an air ticket, I don’t think a pound is that unreasonable.”

He added: “As I say in the North East, we have spent billions on a bank for very good reasons. We could have stood back and said: ‘There you are, tough luck’. We didn’t because that was the wrong approach.”