Political blame game as SNP plans to cut air tax stalled
● Opposition says ministers ‘trying to weasel out’ of controversial proposals
Plans to cut air taxes face being delayed with Scottish and UK ministers at loggerheads over responsibility for the hold-up.
The row came as the SNP government was accused of trying to shelve its controversial proposals in order to gain Greens’ support for its forthcoming budget.
Labour said the problem provided “a convenient opportunity to kick a bad policy into the long grass”. Ministers had hoped to start halving the tax rate from next April when Uk-wide air passenger duty (APD) is replaced in Scotland by air departure tax (ADT). Yesterday finance secretary Derek Mackay said the reductions were being held up by the need to get approval for continuing the current exemption for Highlands and Islands airports, in place since 2001.
He accused the UK government of placing “unacceptable conditions” on
notifying the European Commission that Scotland planned to continue the exemption under the new tax.
However the Treasury hit back blaming the Scottish Government for being “unable to design a tax which is compliant with EU law”.
The SNP plans to halve the current APD rates of £13 per passenger on shorter flights and £78 for trips over 2,000 miles.
Mr Mackay said an alternative proposal to enable the tax cut to proceed would have left Scotland out of pocket to the tune of £320 million.
However, the Treasury said the fault lay with the SNP. A spokeswoman said: “It is disappointing the Scottish Government has been unable to design a tax which is compliant with EU law.
“It is wrong for them to try and pass the blame for their unwillingness to take responsibility for their own tax.” “The UK government remains committed to the devolution of APD, and has worked extensively to help the Scottish Government design its own tax, including offering to make a notification to the European Commission.
“We have also worked with them to identify several alterplans native solutions, all of which the Scottish Government decided against.”
Scottish Conservatives finance spokesman Murdo Fraser said its support would have provided enough votes to get the tax cut approved.
He said: “It’s therefore extremely disappointing to see the SNP trying to weasel out of this commitment. A cynic might conclude that the announcement has more to do with politics, and the SNP’S desire to cosy up to the Greens over the budget again, than legal technicalities.”
Scottish Greens finance spokesman Patrick Harvie said the news was “the latest nail in the coffin of a plan that has no social, economic or environmental credibility. He added: “Scottish ministers might feel they need a technical excuse for dropping their this year, but the longer term issue remains that the SNP’S policy on this is unjust and unsustainable.
“We cannot have cuts to aviation tax in the forthcoming Scottish budget or there’s no possibility of Green MSPS and Scottish ministers meeting to discuss a way forward.”
Scottish Labour transport spokesman Neil Bibby said: “The SNP is using a convenient opportunity to kick a bad policy into the long grass.”
However, aviation industry leaders said the problem could be resolved.
Tim Alderslade, chief executive of Airlines UK, said: “We have been engaging with the Scottish Government and civil servants at Westminster about the situation with respect to the state aid exemption for Highlands and Islands airports and believe that a solution can be reached.”
If the plans are shelved, they would join other key SNP commitment put on ice such as a second independence referendum, scrapping student debt, replacing the council tax with a local income tax, and reducing primary class sizes.
Loganair managing director Jonathan Hinkles said: “It looks as though this will now hold back developments that would grow both tourism and business travel within Scotland.”