Scottish threat to the North East’s airports

The North East’s airports could be under threat as a result of moves to slash the cost of flying on holiday from Scotland.

Scottish Labour is set to call for powers over airport passenger duty (APD) to be devolved to the Scottish Parliament at its conference next month.

The unpopular tax can add hundreds of pounds on to family holidays and the power to cut or axe the duty would make flying from airports in Scotland substantially cheaper.

It is feared the proposal could deal a hammer blow to English airports as passengers flock north of the Border for better deals.

Tory MP James Wharton who represents Stockton said: “Our regional airports already struggle, we must be careful not to find ourselves in a position with fewer airports and a poorer service for the North East.”

Labour MP Phil Wilson, whose constituency includes Durham Tees Valley airport said: “Scottish Labour need to think again, we need to tackle this as the UK.

“Devolving APD to Holyrood would have a detrimental effect on the North East. We’ve got airports having difficulties and one of the issues they always raise is APD.

“Currently airport passenger duty can add as much as £188 per person. For a family of four holidaying in Turkey, for example, it adds over £250 to the cost of a holiday.”

Mr Wilson also pointed to evidence presented to the House of Lords last year which showed that people currently using Newcastle airport would instead fly from Edinburgh if it was cheaper.

The APD proposal was raised by Scottish Labour leader Johann Lamont at a stormy meeting with MPs last month.

The MSP was warned that proposing to devolve APD would enrage Labour MPs in the North of England who fear their airports would suffer. However she is apparently determined to press ahead.

The devolution commission is drawing up Scottish Labour’s alternative to independence.

With the SNP calling for APD to be devolved and the Prime Minister hinting at further devolution in a speech last Friday it seems likely that should Scotland vote against independence in the forthcoming referendum Westminster, will hand over control of the tax.

However, the devolution commission will not recommend transferring corporation tax powers to Scotland.

Deputy leader of the Scottish Labour party Anas Sarwar said: “We do not want a race to the bottom on corporation tax where big business benefits and the workers on the shopfloor don’t.”