Myself and a number of other South West MPs recently wrote a letter to the Chancellor of the Exchequer about this issue. A copy of the letter can be found below.
“We are writing to let you know about the high level of concern amongst Conservative MPs in the South West over the potential devolution of Air Passenger Duty to Wales. The impact of such a decision on our airports, businesses and the wider economy could be extremely 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.
Devolution of APD to Wales would create a tax-payer funded incentive for airlines to relocate to Cardiff Airport, taking passengers and jobs with them. Bristol Airport would be the biggest loser, but other South West airports have also expressed concerns. Even if limited to long-haul flights, the fallout would be significant, with Bristol Airport’s prospects of securing direct services to the US and Middle East put in jeopardy.
Scotland should not be a precedent in this case. The geography of the South West and Wales makes the potential for distortion even greater, with more populous border areas and much smaller distances between competing airports.
Ruling out devolution of APD to Wales in the forthcoming Budget would provide the stable and predictable market conditions required by airports in the South West if they are to continue providing the vital connectivity our regional economy needs. Such a decision would ensure fair competition between airports in the South West and Wales, and would safeguard jobs and support growth in our region.
We look forward to hearing from you. “
I will post the Chancellor's response in due course.