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Cut Air Passenger Duty: Scottish Government’s “Golden Opportunity” to Boost Jobs and Economy

Posted: 7th June 2016



Edinburgh Airport has today submitted its Air Passenger Duty consultation document to the Scottish Government showing that a 50% cut to APD in one move will mean an additional 18 million passengers using Scotland’s airports by 2021. This will create nearly 10,000 new jobs in Scotland and add more than £300 million Gross Value Added per year to the Scottish economy. The document, which was independently verified by BiGGAR Economics, is to inform the consultation on the potential economic and exchequer impacts that could result from a reduction in APD in Scotland.

Gordon Dewar, Edinburgh Airport’s Chief Executive said: “For greater numbers of people from overseas to spend holidays here, visit friends and family, study and do business in Scotland it is vital that the Scottish Government takes this golden opportunity and confirms that APD will be reduced by 50 per cent in April 2018. A one move 50% reduction will bring an extra 18 million passengers to Scotland between the cut being confirmed and the end of 2021. It will generate 10,000 new jobs in tourism and add more than £300 million Gross Value Added per year to the Scottish economy and generate a range of tax revenues that will comfortably exceed the cost of the reduction.

Scotland is a relatively small island nation on the western edge of Europe – how else do we bring people here and how else do we send people, good and services into global markets to compete? As the market place becomes increasingly globalised it is vital that our government uses the new powers at its disposal to reduce this regressive tax and deliver a measure which will give Scotland a competitive edge over the rest of the UK giving a boost to connectivity, jobs and prosperity that will benefit everyone.”

Business Comment

Business Comment is the Edinburgh Chamber of Commerce’s bi-monthly magazine. It provides insight on Edinburgh’s vibrant business community, with features on the city’s key sectors, interviews with leading figures and news on new business developments in the capital.
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