Plan to cut cost of flights stalled

PLANS to cut the cost of air travel in Scotland have been delayed, ministers have confirmed.

The Scottish Government was supposed to gain control of air passenger duty from next April and had planned to cut the levy by 50 per cent.

But SNP ministers requested that the devolution of the tax from Westminster to Holyrood is delayed due to issues resolving state aid rules.

Instead, premium travellers now face a rise in charges, while a ‘Lewis Hamilton’ tax will be imposed on private jets.

As a result of yesterday’s Budget, those who fly first and business class or use pri‑ vate jets will pay more to protect economy passengers from rising air duties.

It could now be several years before Holy‑ rood gets control of the tax, which was to be renamed Air Departure Tax.

The decision means the SNP will not face a battle getting its proposals to cut the tax through in this year’s Budget.

The move was heavily opposed by Labour, the Liberal Democrats and the Greens – meaning the SNP would need to secure the support of the Tories to get its plans through.

Official Budget documents published yesterday stated: ‘The UK and Scottish Governments have now agreed to delay the devolution of Air Passenger Duty. As a result, the Scottish Government’s block grant for 2018‑19 and 2019‑20 will be recalcu‑ lated.’ The SNP has blamed the delay on an exemption for passengers who fly from the Highlands and Islands airports which requires EU approval under state aid rules.

It means that the tax will continue to be operated by the UK Government.

In his Budget speech, Chancellor Philip Hammond made a direct reference to Formula One motor racing champion Lewis Hamilton who was exposed in recent Paradise Papers for avoiding VAT on his £16.5million private jet.

Mr Hammond said: ‘From April 2019, I will again freeze short‑haul Air Passenger Duty rates and I will also freeze long‑haul economy rates – paid for by an increase on private jets. Sorry Lewis.’

The Treasury said that around 95 per cent of passengers fly economy and will benefit from the changes.