Air passenger duty on domestic flights could be slashed under new plans
Air passenger duty on domestic flights around the UK could be slashed as part of proposals to better connect the country – as plans for £10bn tunnel between Northern Ireland and Scotland move a step closer
- Boris Johnson to launch consultation in spring into reforming air passenger duty
- The tax, worth around £3.7bn a year, paid on passenger flights from UK airports
- As part of plans, Prime Minister is set to announce £20million infrastructure fund
- Part of the cash injection will be used as seeding funds for £10bn ‘Boris’ Burrow’
- The plan is to build 25-mile undersea tunnel from Northern Ireland to Scotland
Air passenger duty on domestic flights could be slashed under plans to boost connectivity in the UK – as Boris Johnson’s ambitious proposals for a tunnel between Scotland and Northern Ireland move a step closer.
The Prime Minister is set to launch a consultation this spring on reforming the tax – paid on all passenger flights from UK airports.
Possible cuts include slashing rates for UK internal flights or scrapping the tax for return legs.
The duty, which raises around £3.7billion a year for the economy, is set at £84 for a standard longhaul economy seat and is as low as £13 for shorter flights leaving from the UK.
Mr Johnson says the shake-up, which comes amid calls by the aviation industry for more Covid support, is part of plans for the UK to ‘build back better’ after the coronavirus crisis.
The Prime Minister also hopes it will bring ‘every corner of the UK closer together’.
As part of his new proposals, he is set to announce a new £20million infrastructure fund to help better connect the four UK countries.
Part of the cash injection will be used as early-stage funding for the £10billion the ‘Boris Burrow’ – an ambitious undersea tunnel connecting Larne in Northern Ireland to Stranraer in Scotland.
It will also be used to develop plans for upgraded rail, road, sea and air links between England, Scotland, Wales and Northern Ireland.
The Prime Minister is set to launch a consultation this spring on reforming the tax – on all passenger flights from UK airports
He is set to announce a new £20million infrastructure fund. The money will be on top of the £10billion sidelined for the ‘Boris Burrow’ – an ambitious undersea tunnel connecting Larne in Northern Ireland to Stranraer in Scotland (pictured: A map showing the proposed link)
Air passenger duty on domestic flights could be slashed under plans to boost connectivity in the UK
The money will be spent on exploring the development of projects including improved rail connectivity between the north coast of Wales and England; upgrading the A75 between Gretna, Dumfries and Stranraer; faster rail links from England to Scotland and rail improvements in south-east Wales.
It will also be used to explore new requirements to offset emissions and decarbonise aviation.
But the Transport Salaried Staffs Association (TSSA) said that cutting domestic flight duty ‘flies in the face of the Government’s climate commitments’.
General secretary Manuel Cortes urged the Government to invest in ‘truly green public transport’, such as rail, which is the ‘most effective intercity connection taking people to the heart of our towns and cities’.
It comes as an interim report by Sir Peter Hendy, the boss of Network Rail – who is conducting a review of union connectivity, was published assessing ways transport can better connect all parts of the UK.
The report set out how a UK Strategic Transport Network would deliver the ambition – upgrading direct transport links, reducing delays and stimulating growth across the four nations.
This includes ‘Boris’ Burrow’, a 25-mile tunnel under the Irish Sea that would link Stranraer in Scotland and Larne in Northern Ireland
A direct tunnel from Stranraer to Larne would have to cross Beaufort’s Dyke – where 1.5million tonnes of munitions were dumped after the Second World War.
As an alternative, officials have suggested three tunnels, starting from Stranraer, Liverpool and Heysham in Lancashire, could meet at a roundabout at the Isle of Man, before a tunnel stretched on to Larne.
A bridge is also being considered. In the report, Sir Peter said he has asked two experts to lead a ‘discrete piece of work’ to assess the feasibility of a bridge or tunnel between Northern Ireland and the British mainland.
The Prime Minister has mooted the idea of a bridge several times, and former HS2 Ltd chairman Douglas Oakervee and Gordon Masterton have been tasked with leading the technical review into such a link.
Mr Johnson said: ‘It’s now time to build back better in a way which brings every corner of the UK closer together.
‘We will harness the incredible power of infrastructure to level up parts of our country that have too long been left off the transport map.
‘This pioneering review by Sir Peter Hendy gives us the tools we need to deliver on our ambitions for a UK-wide transport network that encompasses sea, rail, and road – and I also want to cut passenger duty on domestic flights so we can support connectivity across the country.’
Transport Secretary Grant Shapps added: ‘As we build back better from Covid, it is more important than ever that we level-up every corner of our great country.
‘Quality transport infrastructure is key to achieving that, which is why we are committed to boosting connectivity and bringing communities across the UK even closer together.’
Sir Peter said: ‘Devolution has been good for transport but it has also led to a lack of attention to connectivity between the four nations, due to competing priorities and complex funding.
‘A UK Strategic Transport Network could resolve this, with its core objective centred around levelling up across the whole of the UK.’