Air Passenger Duty: Scotland:Written question - 6143

Q
(North West Leicestershire)
Asked on: 08 July 2015
HM Treasury
Air Passenger Duty: Scotland
Commons
To ask Mr Chancellor of the Exchequer, what plans his Department has to publish the results of the economic modelling of the effect of a 50 per cent reduction in air passenger duty in Scotland on the aviation and travel industry in the rest of the UK with its review and discussion paper on that issue; and if he will make a statement.
A
Answered by: Damian Hinds
Answered on: 16 July 2015

In 2012, HMRC published analysis on the effect that differential prices at UK airports could have on overall demand for aviation and passengers' choice of airport. This included an analysis of the impact of price reductions equivalent to 50% of the value of APD in Scotland. The analysis can be found here: https://www.gov.uk/government/publications/modelling-the-effects-of-price-differentials-at-uk-airports

In response to the concerns voiced by airports about the potential impacts of devolution, the government published a discussion paper at Summer Budget 2015. The paper explores the options for supporting regional airports from such impacts. The paper can be found here: https://www.gov.uk/government/publications/discussion-paper-on-options-for-supporting-english-regional-airports-from-the-impacts-of-air-passenger-duty-devolution

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