News & Blog

Read the latest business news, blogs and thought leadership articles from our members, as well as updates on the Edinburgh Chamber of Commerce's work in the city.

News & Blog

Scotland’s Airports Urge First Minister To Commit To Halving APD In Year One – Would Create 4,000 Jobs

Posted: 28th January 2016

Scotland’s main airports have today sent a joint letter to the First Minister and leader of the Scottish National Party Nicola Sturgeon, urging her to give a Holyrood election manifesto commitment to cut Air Passenger Duty (APD) by 50 per cent in April 2018.

Independent research commissioned by Edinburgh Airport found that a 50 per cent cut in APD would generate an additional 4,000 jobs and bolster Scotland’s economy by an additional £1 billion.

Gordon Dewar, Edinburgh Airport’s Chief Executive, said:

“We welcome the Scottish Government’s recognition that Air Passenger Duty is an iniquitous tax hitting all of our passengers – that is why we are urging Nicola Sturgeon and the SNP to make a commitment to halve APD in 2018.

“It needs to be a priority because any piecemeal approach would significantly undermine the benefits that an early 50 per cent cut would bring.

“We are asking Nicola Sturgeon to underline her Government’s commitment and to take action that would strengthen Scotland’s economy by an additional £1 billion, deliver 4,000 jobs, boost tourism and create prosperity for Scotland.”

Amanda McMillan, managing director of Glasgow Airport said:

“Scotland’s major airports have always had a very clear position on the importance of abolishing APD. In 2014, Aberdeen, Glasgow and Edinburgh Airports together made the case for the devolution of APD to the Smith Commission, and we welcomed the positive response to that in the final report which was published last year.

“We would urge the Scottish Government to implement its promised 50% cut in APD as soon as possible. The longer this regressive tax is in place, the longer it will damage Scotland’s economy, our tourism potential and our ability to prosper as a nation. This is something which has also been recognised by our business and tourism partners.”

Carol Benzie, managing director of Aberdeen International Airport said:

“The reduction and eventual abolition of APD will play a major role in strengthening Scotland’s connectivity and will help to boost our economy. This is all the more important when taking into account the current economic conditions in the north east of Scotland and the effect of the current low oil price.

“It is vital that the Scottish Government makes progress on this policy as a matter of urgency to ensure that the north east of Scotland can make a swift recovery, that our tourism industry can continue to flourish and that those who are eager to travel in and from Scotland are not unfairly penalised by the highest air passenger tax in the world.”

Liz Cameron, Chief Executive of Scottish Chambers of Commerce, backed the call to cut APD in half in year one and said:

“Air Passenger Duty is a tax on Scotland’s connectivity and a tax on international trade. The UK is currently one of the few European countries to apply a tax on air travel and it does so at a very high rate. Devolution of APD therefore gives Scotland the opportunity to boost our competitiveness by decisively reducing the impact of this tax by 50%. Doing so would make Scotland an even more attractive place to do business and the sooner this tax is cut, the better.”

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.
Read more here