Air Passenger Duty may generate £3.2 billion a year for the Treasury, but Guido wonders why George doesn’t just go out on a wing and get rid of the tax altogether. It would hardly be terminal for the UK economy – a projected fall in the deficit of £6.2 billion by 2015 would more than cover the cost to the Exchequer and the move would encourage more flights into to the UK.
There was a growing problem on the APD front too – all the evidence seems to suggest that the SNP are going to remove APD altogether on Scottish flights – creating competition from north of the border to Newcastle Airport in the soon-to-be Northern Powerhouse. That could be what made the idea fly…