Cameron claims SNP MPs could force up air passenger duty

SCOTTISH Nationalist MPs could help force up taxes at English airports unless their Westminster voting rights are curbed, David Cameron claimed yesterday (Friday, April 24).

The prime minister raised the prospect of the Edinburgh Parliament slashing air passenger duty (APD) in Scotland, then its MPs voting with Labour to widen the gulf further.

The claim follows growing alarm among North airport bosses and business leaders that new powers to be granted to Scotland to cut – or abolish – APD pose a real risk to investment and jobs.

Newcastle Airport suggested 1,000 jobs would be at risk, draining £40 million from the region’s annual economic output, and the CBI North-East has revealed its alarm.

But the claim was immediately ridiculed by Labour, which said: “Unless the Tories are planning to vote to raise APD then SNP MPs could not impose higher air passenger duty on English airports.”

A Labour spokesman said George Osborne had failed to reply to its request for cross-party work to protect Northern airports, adding: “This is desperate stuff from David Cameron.”

The prime minister’s comments came as he pledged that “English votes for English laws” would be in place for the first Budget of a Conservative government, to head off such a threat.

And an “English rate of income tax” would follow once more powers are devolved to Scotland, although it could also apply in Wales and Northern Ireland.

Mr Cameron said: “The real threat to the United Kingdom comes from those who will not engage with this agenda. Air passenger duty is a classic example.

“If Scotland chooses to slash, or abolish, air passenger duty for flights from Edinburgh and Glasgow, how can it be right for Scottish MPs, potentially – holding the balance of power in a future Parliament – to then impose higher air passenger duty on English airports? It’s just not fair.”

Alongside him, William Hague, the Commons Leader, said Labour would be “under daily pressure from the SNP to ensure the burden of higher taxes would fall disproportionately on England”.

But the Labour spokesman added: “A Labour government will ensure there is a mechanism in place to ensure English regional airports do not lose out from any potential cut in APD in Scotland.”

Mr Cameron recently made the same pledge, promising he would not allow “unfair tax competition” to hurt Newcastle and Durham airports – implying copy-cat APD cuts in England.

The prime minister added that a lower APD rate in the North-East – as proposed by some of the region’s Labour MPs – was a “positive suggestion”.

In February, transport minister Robert Goodwill warned airlines – as well as huge numbers of passengers – will desert Newcastle Airport if Scotland slashes its taxes.

The Northern Echo asked the SNP if its MPs would vote on the level of APD if it affected English and Welsh airports only, but the party did not respond.