Airport claims £1bn benefit to cutting Air Passenger Duty

A cut to Air Passenger Duty (APD) would provide a £1bn boost to the economy by 2020 and create 4,000 jobs in the process, according to Edinburgh Airport.

The report, commissioned by Edinburgh Airport, states the Scottish Government's current plan, to reduce APD by 50% will create 3,800 jobs by 2020.

The airport’s chief executive Gordon Dewar said: “We‘ve long argued that APD is a tax on Scotland’s ability to compete with European airports of or size, and our economy is footing the bill in lost jobs and lost opportunities.

“Our report shows that the economic benefit of a reduction will outweigh any lost tax revenues. It’s therefore reasonable for passengers, airlines and the tourism industry to have some certainty on when this regressive tax will be reduced, and to know whether it will eventually be scrapped.”

APD is one of the new powers to be transferred to Holyrood through the Smith Agreement.

But while the SNP welcomed the report, environmental groups have been wary of any reduction, with WWF Scotland warning that any growth in emissions from aviation would need to be offset by greater reductions elsewhere.

SNP MSP Colin Keir said: “The tourism tax that is particularly damaging to Scottish airports – should be cut at once. Devolution of APD would be a game changer for Scottish airport.

“The Scottish Government has committed to cutting Air Passenger Duty once it is devolved and that responsibility cannot come soon enough for passengers and Scotland’s airports.

“Only a strong team of SNP MPs elected on May 7 will ensure Scotland gains the powers it has been promised – including APD – to create jobs and build a more prosperous and fairer country.”

Reacting to the Smith report in November, WWF Scotland director Lang Banks wrote: “Air Passenger Duty will now be devolved and given this is currently the only tax on the air transport industry, any subsequent changes must reflect the significant amount of our emissions that come from flying.”