Air Passenger Duty: Scotland

HM Treasury written question – answered on 12th June 2015.

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Photo of Lord Beecham Lord Beecham Shadow Spokesperson (Communities and Local Government), Shadow Spokesperson (Justice)

To ask Her Majesty’s Government what estimate they have made of the impact on Newcastle International Airport of the proposal to devolve power to the Scottish Government to determine the level of Air Passenger Duty for travellers using Scottish airports.

Photo of Lord O'Neill of Gatley Lord O'Neill of Gatley The Commercial Secretary to the Treasury

The impact on Newcastle airport will depend on a number of decisions following the devolution of air passenger duty (APD) to the Scottish Parliament.

The date that APD is “switched off” in Scotland will depend on discussions on the over-arching Fiscal Framework to be agreed between HM Government and the Scottish Government. It will also depend on the readiness of the Scottish Government to assume the fiscal responsibility of having the power to charge its own tax devolved to it. The Scottish Parliament will have the power to introduce its own APD, with rates at the levels it chooses.

In response to the concerns voiced by airports about the potential impacts of devolution, the Government will publish a discussion paper exploring the options for supporting regional airports from such effects. The discussion paper will be published by the summer.

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