Why the Chancellor should ensure 'A Fair Flight For The South West'

Bristol Airport launches a campaign for “ A Fair Flight For The South West ” today to highlight the danger posed by devolution proposals being considered by the Chancellor. 

The devolution revolution sweeping the UK may be intended to create prosperity in the regions, but it risks having unintended consequences in the South West in the case of APD.  Devolution of this tax to Wales would hand state-owned Cardiff Airport a significant competitive advantage over neighbouring English airports, with serious consequences for connectivity, jobs and growth.  While this may seem like a local issue of little consequence when viewed from London, it could be a significant test of the ‘no detriment’ principle so clearly set out by the Chancellor and Prime Minister in the context of Scottish devolution.

These are exciting times at Bristol Airport.  We were recently named the UK’s most punctual airport, ranking tenth in the world for on-time performance out of 4,000 airports across the globe.  A £24 million west terminal extension – which will make put our passenger security process up there with the best in Europe – is taking shape and we confidently expect to see more than seven million people pass through our terminal this year for the first time in our history.  If airports are reliable barometers for the economies they serve then the prospects for growth in the South West look good. 

But devolution of APD to Wales risks wrecking this success story.  It would create a tax-payer funded incentive for airlines to relocate to Cardiff Airport, taking passengers and jobs with them.  Bristol Airport and the South West region it serves would be the biggest losers.  Even if limited to long-haul flights, the fallout would be substantial, with our ambitions to secure direct services to the US and Middle East put in jeopardy.

Scotland and Northern Ireland, which have both seen full or partial powers over APD devolved, are cited as precedents by those who demand fairness.  But the situation in Wales, where the border areas are more populous and competing airports much closer, is very different.  Handing the Welsh Government the tools to give a tax break to an airport it owns would be the very opposite of fair.

We expect competition - but on a level playing field.  The impact of devolution of APD to Wales would be severe, resulting in less choice and more expensive travel for people in the South West when going on a hard-earned family holiday or doing business overseas.  That’s why we are urging the Chancellor to rule it outon 16th March.