Daily Mirror (Northern Ireland)
Air duty cut is a business ‘class’
Chancellor’s move warmly welcomed
THE Northern Ireland business community has warmly welcomed the Chancellor’s pledge to reduce air passenger duty on domestic flights which it says will help improve connectivity and grow exports.
The move, announced by Rishi Sunak in the Autumn Budget, will help airlines operating from Northern Ireland’s airports compete with Dublin Airport and others in the Republic where APD was scrapped nine years ago.
It may also woo new airlines or the return of others which saw the tax as an impediment to operations here.
In August, budget airline Ryanair announced it was stopping all flights from Northern Ireland, citing what it saw as unfair levels of APD in the region.
APD is currently levied at £13 per person flying from a UK airport each way and it is not yet clear how much the tax will be cut by the Chancellor.
Kirsty Mcmanus, National Director, Institute of Directors Northern Ireland, said the move follows a sustained campaign by the business community.
She added: “The reduction in the air passenger duty rate for domestic flights from 2023, in particular, is a hugely welcome development and follows sustained calls from the business community over many years.
“While we would like to see the levy scrapped altogether, the reduction will provide welcome relief to our members, many of which rely on the regional air network to connect with colleagues and customers in the crucial Great Britain market.” Alan Gourley, Tax
Director at business advisory firm Grant Thornton in Belfast, said exporters will benefit from the cut.
He added: “In terms of the impact on local businesses, the relaxation in the rate of air passenger duty will of course be welcome news to Northern Ireland-based companies that are heavily reliant on air travel to connect with the GB market.” Meanwhile, the Chancellor also announced a further £1.6billion in spending for the Executive, an uplift which “will be a shot in the arm for the local administration”, Ms Mcmanus said.
“It is incumbent now on ministers to deliver on the incredible potential it presents, with a focus, through targeted investment in key services and infrastructure, on ensuring this region is fit to capitalise on the green recovery as we continue to emerge from the coronavirus pandemic.”