Treasury written question – answered at on 15 July 2003.
Anne McIntosh
Shadow Minister (Environment, Food and Rural Affairs), Shadow Minister (Transport)
To ask the Chancellor of the exchequer whether the Airport Passenger Tax is designed to produce environmental benefits. [R]
John Healey
The Economic Secretary to the Treasury
Air passenger duty (APD) was introduced in 1994 as a measure whose principal purpose was to raise revenue from the aviation industry but with the anticipation that there would be environmental benefits through its effect on air traffic volumes.
The Government are currently discussing with stakeholders the most effective economic instruments to ensure the aviation industry takes account of, and where appropriate reduces, its contribution to global warming and local air and noise pollution. A Government discussion document, Aviation and the Environment: using economic instruments, was published in March 2003.
The chancellor of the exchequer is the government's chief financial minister and as such is responsible for raising government revenue through taxation or borrowing and for controlling overall government spending.
The chancellor's plans for the economy are delivered to the House of Commons every year in the Budget speech.
The chancellor is the most senior figure at the Treasury, even though the prime minister holds an additional title of 'First Lord of the Treasury'. He normally resides at Number 11 Downing Street.