The British Air Transport Association (Bata) and Board of Airline Representatives in the UK (Bar UK) raised concerns over the summer about proposals to deal with the impact of devolution of APD to Scotland.

Both groups have now highlighted notable flaws with the three potential policy options set out in the Treasury discussion paper on the issue. They said it comes after the latest official statistics published last week revealed that APD had already cost passengers using UK airports over £2.3 billion in the first nine months of 2015.
 
The trade associations highlighted that a 50% reduction in Band A and Band B rates of UK APD would be the best way to ensure broad parity with Scotland in the short term, which they insisted would support regional growth.

The key objective remains the abolishment of APD before the end of this parliament, “to deliver the greatest economic benefits and transform the UK’s competitiveness”, they said.
 
Nathan Stower, Chief Executive of Bata, said: “The Chancellor is right to recognise that devolution including the Scottish Government’s plans to halve APD will have implications for England, but we cannot support the devolution of APD within England.

“We are particularly concerned that a group of airports are proposing that there should be a higher rate of APD at so-called ‘congested airports’.
 
“We believe there is a compelling economic and political case for abolition of APD during this Parliament to improve the UK’s international competitiveness, boost trade, increase productivity, encourage inbound tourism and support the travelling public.”
 
Commenting on the recent Treasury Discussion Paper about responding to the impact of devolution of APD, Dale Keller, chief executive of Bar UK said:
 
“We believe passengers would find it hard to understand and difficult to accept having to pay more tax to fly than people living in other parts of the country. To put it simply, why should someone living in Bedford, Croydon, or Reading have to pay more tax to visit a potential client, go on holiday, or visit their family and friends, than someone living in Bradford, Chorley or Redcar?
 
“Devolution presents the Chancellor with an opportunity to take the lead in addressing the fundamental lack of competitiveness of UK APD.”