Air tax cut at heart of climate dilemma

Scotland must tread a careful path towards twin goals of economic growth and net-zero carbon emissions

The Scottish Government’s dilemma over its longstanding plan to cut air departure tax – despite Nicola Sturgeon’s recent declaration of a “climate emergency” – is one that is emblematic of the tough choices facing the country over the next few decades.

How can Scotland play its part in the fight against climate change, while still ensuring the economy grows? Following expert advice, it will become government policy for Scotland to reach net-zero carbon emissions by 2045. However, that does not mean no carbon will be released into the atmosphere by that year, but that any remaining emissions are offset in some way, for example by planting trees.

The SNP is coming under pressure to scrap the planned air tax cut from Labour, the Liberal Democrats and the Greens, while the Conservatives support the move on the grounds that it will “deliver an economic boost for Scotland”.

The question is whether this economic boost also makes sense as part of the broader mission to become a net-zero carbon economy in 26 years’ time.

According to Labour, the proposed cut would mean £150 million less for public services – money that

could be spent on public transport, energy efficiency or other carbonsaving schemes. Scrapping the tax would also encourage more people to fly, potentially increasing emissions by 60,000 tonnes a year, which as Dr Richard Dixon says on these pages today would be like adding 30,000 new cars to our roads.

However, cheaper air fares and more flights would foster improved business links to other parts of the world and encourage more tourists to visit. ‘Freedom of movement’ is not just a political issue, but a practical one of pounds and pence. And a better economy would mean more funds to help Scotland decarbonise.

The need to add ‘carbon accounting’ to the usual economic kind makes these decisions far more complicated, hideously so in fact. In declaring a climate emergency, the First Minister did not implicitly sign up to scrap the planned air departure tax cut – the one doesn’t necessarily follow the other.

However, if the cut is to be introduced, the Scottish Government needs to make a convincing case that it can be done within the context of its world-leading carbon targets.

If it does not, then all its talk of a “climate emergency” may turn out to be little more than hot air.