Labour
1. Air Passenger Duty
There is no specific mention of APD in the Labour manifesto and a spokesperson did not respond to TTG’s request for clarification.
2. Business Rates
Labour is promising to review land value tax on commercial landlords as an alternative to business rates, which it describes as “causing real issues for high street retailers”.
The party would also develop a retail sector industrial strategy, but specific details of this are not included in its manifesto.
During a speech to the Confederation of British Industry on 18 November, leader Jeremy Corbyn elaborated: “Small businesses will see late payments tackled, whether those late payers are larger companies or government; business rates reformed, because we know the damage they’re currently doing to our high streets and communities; and access to finance improved with a Businesses Development Agency as part of the new Post Bank [based in Post Offices].”
Elsewhere, Labour plans to raise corporation tax to 26% by 2022.
3. Prioritising Tourism
There is just one mention of tourism in the Labour manifesto launched on 21 November.
In this section, the party promises to invest in “neglected” communities, with a £1 billion Cultural Capital Fund towards attractions such as museums and galleries, as well as libraries.
4. Airport expansion
In its manifesto, Labour said any airport expansion must pass its tests for “air quality, noise pollution, climate change obligations and countrywide benefits”.
It added: “We will examine fiscal and regulatory options to ensure a response to the climate crisis in a way that is fair to consumers and protects the economy.”
In June 2018, the party said the proposed Heathrow expansion did not meet its criteria, which include delivery of increased capacity and emissions reduction.
Last month, shadow chancellor John McDonnell suggested plans for the third runway would be scrapped. Instead, Labour is keen to focus on trains – including the renationalisation of the railway.
Conservatives
1. Air Passenger Duty
In its manifesto, the Conservative Party makes one mention of APD in a paragraph about Northern Ireland. It says it will consider devolving responsibility for short-haul APD to “serve our goal of making our union more prosperous and connected than ever before”.
2. Business Rates
In an attempt to “keep town centres vibrant”, the Conservatives have promised to conduct a review of the business rates system in order to reduce the charge for retail premises.
It has also been widely reported that current prime minister Boris Johnson would increase employment allowance from £3,000 to £4,000.
The Conservatives say they would postpone a reduction in the corporation tax rate from 19% to 17%.
3. Prioritising Tourism
The party’s manifesto does not specifically mention the tourism industry, except to say it will clamp down on “health” tourism, by which people travel to the UK to take advantage of the NHS. It stated it would “ensure that those from overseas who use NHS services pay their fair share”.
A spokesperson did not respond to request for clarification.
4. Airport expansion
In 2015, while he was mayor of London, Johnson controversially said he would “lie down in front of bulldozers” rather than see Heathrow’s expansion.
However, in 2018 the then-foreign secretary was absent while a key vote on the plans was taking place.
The Conservative government voted in principle to support the third runway, and its 2019 manifesto affirms this position.
However, it stresses the expansion will not receive any public money. “It is for Heathrow to demonstrate that the business case is realistic,” the party says.
Johnson has also promised to use new aviation technology to reduce delays and pollution, building on the possibility of electric and low-carbon flights.
Liberal Democrats
1. Air Passenger Duty
The Lib Dems would make APD a “green tax” to try to reach net-zero emissions by 2045. APD on a passenger’s first flight each year would be effectively zero, but would increase progressively for each subsequent journey.
This policy aims to cap passenger demand. They say this strategy would raise £4.8 billion a year by 2024/25 to be spent on infrastructure to tackle climate change.
A spokesperson said: “We believe reforming APD to target those who fly the most is the right thing to do.”
2. Business Rates
The party wants to scrap both non-residential stamp duty and business rates, replacing the latter with a commercial landowner levy. Businesses would not have to pay tax on their physical premises, but landlords would be charged an equivalent rate based on the value of the site. Lib Dems say it represents a tax cut for businesses in 92% of English local authorities, but would be “at least revenue-neutral in the long-term”.
It also says it will restore corporation tax to 20% and keep the rate stable.
3. Prioritising Tourism
Jo Swinson’s party says it would create a Department of Digital, Culture, Media, Sport and Tourism with a designated minister of state for tourism.
It would also enable local authorities to bring in tourist levies to fund local infrastructure.
A spokesperson said: “We are committed to supporting the tourist industry, which is vital for many local economies.”
4. Airport Expansion
Opposing any expansion of Heathrow, Gatwick or Stansted airports, the Lib Dems would place a temporary ban on any new runways in the UK.
They are also against any new airport in the Thames estuary, and would make zero-carbon fuel blending a requirement for domestic flights.
