Theresa May’s DUP deal offers tax breaks for Northern Ireland airports – detailed report to be commissioned
Date added: 27 June, 2017
The details of the deal struck between the DUP and the Conservatives say: “A detailed consultative report will be commissioned into the impact of VAT and APD on tourism in Northern Ireland to recommend how best to build upon the growing success of that sector.” DUP sources told the Guardian that the abolition or radical cut to the air passenger duty (APD) for Northern Ireland’s three airports, which is not included in the initial deal, would be a “post-Brexit ask”. The DUP and the Tories both agreed that they would review APD, the abolition of which the airline industry in Northern Ireland claims would create thousands of new jobs and enable the region to compete with airports in the Irish republic, where the tax has been ditched. DUP sources said it would be opportune to demand APD’s abolition in the region once Brexit had happened and the UK was no longer bound by EU-imposed rules on airline taxation. But having no APD in Northern Ireland has implications for other UK regional airports. MPs from the North East want a fair deal for their airports, as there would be more competition from Northern Ireland. This comes after the Scottish government, which has control over its APD, announced plans to cut the duty by 50% in 2018 at airports such as Edinburgh and Glasgow. Other regions of the UK need investment, and not only Northern Ireland.
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The details of the deal struck between the DUP and the Conservatives
27.6.2017
Read more at: http://www.newsletter.co.uk/news/in-full-the-details-of-the-dup-tory-deal-for-northern-ireland-1-8026406
“A detailed consultative report will be commissioned into the impact of VAT and APD on tourism in Northern Ireland to recommend how best to build upon the growing success of that sector.”
http://www.newsletter.co.uk/news/in-full-the-details-of-the-dup-tory-deal-for-northern-ireland-1-8026406
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26.6.2017 (Guardian)
The abolition or radical cut to the air passenger duty (APD) for Northern Ireland’s three airports, which is not included in the initial deal, would be a “post-Brexit ask”, DUP sources said.
The DUP and the Tories both agreed that they would review APD, the abolition of which the airline industry in Northern Ireland claims would create thousands of new jobs and enable the region to compete with airports in the Irish republic, where the tax has been ditched.
DUP sources said it would be opportune to demand APD’s abolition in the region once Brexit had happened and the UK was no longer bound by EU-imposed rules on airline taxation.
https://www.theguardian.com/politics/2017/jun/26/dup-to-seek-cuts-in-air-passenger-duty-and-corporation-tax-to-back-tories
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Concern as Theresa May’s DUP deal offers tax breaks for Northern Ireland airports
MPs say English regional airports and the wider economy will suffer as rivals in Northern Ireland and Scotland enjoy lower taxes
BY JONATHAN WALKER (Newcastle Chronicle)
26 JUN 2017
MPs have demanded a fair deal for North East airports after it emerged Theresa May has offered Northern Ireland tax cuts as part of a £1 billion deal with the DUP.
A document published by Downing Street revealed the Government has agreed to look at the rate of Air Passenger Duty (APD) paid by Northern Ireland airports, paving the way for future cuts.
It’s part of a deal in which Mrs May agreed to provide extra cash for Northern Ireland in return for a pledge from the Democratic Unionist Party (DUP) to support her Conservative government in key House of Commons votes.
And it means regional airports in England are set to face competition from airports in Northern Ireland which have an unfair advantage because the tax levelled on air travel is lower. It also comes after the Scottish government, which has control over APD north of the border, announced plans to cut the duty by 50% at airports such as Edinburgh and Glasgow.
Sedgefield Labour MP Phil Wilson said: “The North East should be included in this review.
“Or if that is not possible then a review should be set up for this region.”
And Newcastle North Labour MP Catherine McKinnell said: “It’s no surprise the DUP have been able to force Theresa May into so many concessions given the incredibly weak position she now finds herself in.
“And nobody doubts that Northern Ireland is in need of investment, nor that any increased funding for infrastructure or our public services is welcome.
“But regions like the North East are also crying out for funding after seven years of punitive Tory cuts, with public services now on their knees. Any additional investment should be allocated fairly across the country, not just to the parts of the UK where their MPs are able to prop up a minority Conservative Government.
“The Prime Minister has also placed issues such as the impact of Air Passenger Duty on Northern Ireland firmly on the table, whilst still totally failing to address the damaging effect of devolving this tax to Scotland on Newcastle Airport and the North East’s economy.
The little known tax that could impact on your holidays out of Newcastle Airport
“This is pork barrel politics at its very worst, and an outrageous way to run a Government. And, once again, the North East is clearly going to lose out as a result of this Tory-led mess.”
The two MPs wrote earlier this month to Mrs May to warn that tax breaks for Northern Ireland airports could have a damaging effect on Newcastle International and Durham Tees Valley airports, but their concerns appear to have been ignored.
A document published by Number 10 setting out the terms of the DUP deal states: “A detailed consultative report will be commissioned into the impact of VAT and ADP on tourism in Northern Ireland to recommend how best to build upon the growing success of that sector.”
PLANNING & CORPORATE AFFAIRS DIRECTOR EXPLAINS WHY THE AIR PASSENGER DUTY ISSUE AFFECTS EVERYONE
Managers at Newcastle International Airport and Durham Tees Valley Airport are already concerned about the impact plans to cut Air Passenger Duty in Scotland will have on their businesses and the wider economy
Around 3,2000 people are employed at Newcastle International, but a study found the airport supports 7,800 jobs in total across the region and adds £400 million to the local economy.
The Scottish Parliament has introduced a Bill to cut APD north of the border by 50% next year, with a long-term goal of abolishing it altogether.
English airports, however, have to maintain the current level of APD, which can be up to £450 per passenger.
And that means they are less attractive both to passengers and, perhaps most damagingly in the long run, to airlines considering whether to fly services out of.
Mrs May’s deal with the DUP will allow her to count on the support of the party’s 10 MPs in the House of Commons, following the general election that left the Conservatives without a majority.
http://www.chroniclelive.co.uk/news/north-east-news/concern-theresa-mays-dup-deal-13242046
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Posted: Tuesday, June 27th, 2017. Filed in General News, News about Airports, Recent News.