TheLocalYokel
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- Jan 14, 2009
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- #241
This is beyond speculation, just late night conspiracy theory. As a franchise partner to BE it may be possible that Eastern have some insight to discussions between the UK gov and BE?
Would this move before the march budget be foreshadowing a possible relaxation of APD on domestic flights between airports below X-pax pa?
Almost certainly illegal* under EU state aid rules which the UK has agreed to abide by during the transition period which is due to terminate at the end of this year.
Member states must not vary national tax rates in a way that is more favourable to individual regions, so such a move would have to wait until after the transition period.
Tax powers including APD can be devolved to a regional authority in an EU state (the UK in our case) that is deemed institutionally autonomous, procedurally autonomous and economically autonomous. Wales, like Scotland and Northern Ireland, fit that bill as regional authorities within an EU state, thus Wales could have varied its own APD rates compared with England's had it had APD powers devolved.
It would be highly unlikely to the point of being discounted that any government would give one company prior notice or even a hint of its future taxation plans. It would be political suicide for any chancellor and might even lead to criminal charges if it became known.
* unless the UK government chances its arm and takes that path in the knowledge that if the European Commission declares it illegal, which it almpost certainly would, the UK will be out of the EU by the end of the year. That sort of cavalier action could impact on the leaving negotiations though and rebound on the UK.