Unanimous agreement of Welsh Affairs Committee: Devolve Air Passenger Duty to Wales by 2021

Unanimous agreement of Welsh Affairs Committee: Devolve Air Passenger Duty to Wales by 2021
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Cardiff Airport welcomes the report published today [Tuesday 11 June] by the Welsh Affairs Committee into the devolution of Air Passenger Duty (APD).

The unanimously-agreed report recommends that the UK Government should hand over control of Air Passenger Duty in Wales to the Welsh Government by 2021.

Cardiff Airport has continuously reinforced its position on the matter – calling for the tax to be devolved and then reduced or abolished.

Cardiff Airport believes that the devolution and subsequent modification of APD in Wales offers a significant opportunity to create value for both the Airport and region, supporting an integrated UK aviation strategy without detrimental impact on airports across the border in England.

Devolution alone would not directly affect the Airport business however, it would offer the Welsh Government the discretion to set levels appropriately for Wales. It is the subsequent reduction or abolishment of APD, which would positively affect Cardiff Airport and the regional economy by stimulating airline activity resulting in more passengers and business growth.

Whilst Cardiff Airport recognises the responsibility of the industry to reduce its environmental impact, it acknowledges that displacing air travel to/from London airports will help reduce carbon emissions from long car journeys by keeping air travel within the region. Cardiff Airport is firmly committed to reducing its carbon footprint and has introduced a significant number of initiatives to offset emissions and improve efficiency.

Deb Barber, CEO at Cardiff Airport said, “We are delighted by the findings of the report which show the Committee agree with the strength of the compelling case to devolve APD without adversely affecting English Airports.

“Devolution allows the Welsh Government the discretion to set levels appropriately for Wales and must be balanced with environmental considerations –there is certainly an opportunity to reduce the need for long car journeys to and from English Airports by increasing flight options to and from the region.

“The recommendation must now be taken seriously by UK Government as a subsequent reduction offers a significant opportunity to create value for the region supporting an integrated UK aviation strategy. With Brexit on the horizon, the UK should seize the opportunity and take forward solutions to be more competitive, stimulate investment and encourage global connectivity.”

 

Would Wales become a tax haven or am I now venturing into the fanciful?

I don't believe so. I think it would be just much more competitive as a country against it's neighbours and having control of taxes like APD would help with that.

 

The GDP of the Welsh economy is estimated at £70 billion. Also one of the problems with estimating how much tax Wales brings in is that many companies that'll operate in the UK will pay tax to the UK government and their Welsh revenue is never really declared. Another factor is the water and electricity that goes to England especially the electricity that Wales over produces by 50% and never gets compensated for. It is believed that because of this Wales tax revenue would be much more than the block grant it currently gets. Even if it runs a fiscal deficit like most countries do it would be able to financially support itself and of course have much more ability to shape it's own economy and create new streams of revenue for itself.

Mine was a genuine question, not a rhetorical one, so thank you for your response, Jerry. I've not read deeply into the subject but different commentators (I eschew the word 'expert' in this scenario) seem to come up with conflicting opinions, even when ignoring those with clear party political bias (and that includes some political media correspondents who are clearly more to the right, centre or left as the case may be).

Given the mess with Brexit and the uncertainty as to what will flow from the current position, I suppose it's little wonder that there is no clear consensus because, as you rightly point out, there are so many imponderables.

If the UK did move to something approximating a federal system through devo max, it has to involve all four home countries otherwise the Law of Unintended Consequences will surely be throwing its weight around. It might anyway - it often does with any new legislation.

 

If the UK did move to something approximating a federal system through devo max, it has to involve all four home countries otherwise the Law of Unintended Consequences will surely be throwing its weight around. It might anyway - it often does with any new legislation.

Apparently Boris Johnson is promising more devolution to the regions, I imagine he means in England, with the same sort of powers as the London mayor. Though I have a feeling more devolution to Wales and Scotland may not be on the agenda. I do think that they should bring in proper federalisation maybe even splitting England up into it's old ancient kingdoms maybe which would mean it's more regional.
With Wales know generally the belief of it being able to stand on it's own tends to wane the more right wing the persons politics is with many ultra Unionists practically saying Wales is a third world country. I do think that in the main more people are starting to believe that Wales could stand on it's own 2 feet and now it's just a case of whether it's people want to.

 

Apparently Boris Johnson is promising more devolution to the regions, I imagine he means in England, with the same sort of powers as the London mayor. Though I have a feeling more devolution to Wales and Scotland may not be on the agenda. I do think that they should bring in proper federalisation maybe even splitting England up into it's old ancient kingdoms maybe which would mean it's more regional.
With Wales know generally the belief of it being able to stand on it's own tends to wane the more right wing the persons politics is with many ultra Unionists practically saying Wales is a third world country. I do think that in the main more people are starting to believe that Wales could stand on it's own 2 feet and now it's just a case of whether it's people want to.

The speed at which Westminster devolves power is not at all encouraging. Devolution took place in 1999, the WAG was given power over roads in2011!

 

The speed at which Westminster devolves power is not at all encouraging. Devolution took place in 1999, the WAG was given power over roads in2011!

So it should be about 2050 when APD gets devolved!