The UK government
has said it will consult on cutting Air Passenger Duty (APD) on
internal flights and has committed £20 million of funding to develop plans
for upgraded rail, road, sea and air links within the country.
The news follows
publication of an interim report on connectivity within the United Kingdom led by Network Rail’s chairman Sir
Peter Hendy. Sir Peter has mooted the creation of a UK Strategic Transport
Network to better connect the four nations in the union.
The consultation,
which will be completed this spring, will look at options to change
the APD treatment for domestic flights, such as reintroducing a
return leg exemption or creation of a new lower domestic rate. Sir Peter’s report
highlights that domestic APD is a particular concern in Scotland and Northern Ireland.
The government
added that it was also looking at the case for increasing the number of
international distance bands in APD as part of the goal to reach net zero carbon emissions as
well as mandating the use of sustainable aviation fuels.
The projects that
will benefit from the new funding include:
- improved rail connectivity between the north coast of Wales and England;
- upgrading the A75 between Gretna, Dumfries and Stranraer – a key route
for south-west Scotland and Northern Ireland but almost entirely
single-carriageway;
- significantly faster rail links from England to Scotland, including
looking at options to enhance the West Coast Main Line;
- rail improvements in south-east Wales.
Prime Minister
Boris Johnson said: “It’s now time to build back better in a way that 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.”
Responding to the news, Tim Alderslade, CEO of Airlines UK, the industry association representing UK-registered carriers, said: “This is really positive news that will help support regional connectivity, level up the UK, and provide a welcome measure of relief to domestic carriers facing an existential threat from the impacts of Covid. It will help to sustain current domestic connections – including into Heathrow, our national hub, as well as all the regions of the UK.”
Airport Operators Association chief executive Karen Dee said: “Domestic aviation suffered a double-hit in the last year, with the collapse of Flybe and the Covid-19 pandemic, and this offers a glimmer of hope for the future.
“Sir Peter notes in his review that many of Flybe’s routes were unprofitable prior to the pandemic. With aviation’s recovery expected to stretch beyond 2025, this will put further routes at risk of not returning quickly or at all, not just domestically but also from regional airports to international destinations.
“That is why the Government’s long-promised Aviation Recovery Package must set out an ambitious strategy to return international and domestic connectivity to the UK nations and regions."