Aberdeen business chiefs warn flight tax rise will ‘hammer’ north-east

Aberdeen business chiefs are sounding the alarm at any plan to increase taxes on domestic flights, which they claim will hammer the north-east.

They spoke out at suggestions the Scottish Government is considering a levy on passengers as they look for new ways to bring down carbon emissions.

It was described as a “knee jerk” reaction as First Minister Humza Yousaf seeks ways to address backlash for ditching a promise key to cut greenhouse gases by 75% before the end of the decade.

But Aberdeen and Grampian Chamber of Commerce said an increased tax on flights would be counterproductive.

Chief Executive Russell Borthwick said rail services from the north-east were not quick or reliable enough to act as a substitute for business travellers.

He said: “At a time when we’re putting in so much hard work to attract international investment to our region, unthinking proclamations like this can really scare the horses – it’s deeply unhelpful.

“Aberdeen has suffered chronic underinvestment in our travel infrastructure over decades.

“Rail services to the rest of Scotland are nowhere near as fast and reliable as they could be and are not a viable alternative for business travellers, for whom time is money.”

A spokesperson for Aberdeen Airport said: “Rather than focus on punitive taxes which will do nothing to address emissions while harming essential connectivity, government needs to consider how it can help advance the aviation industry’s transition to net zero.”

Air passenger duty for UK flights currently ranges from just £7 per flight to £78.

Exemption row

The SNP has been able to replace the current levy with an overhauled air departure tax since 2016, when powers were devolved.

But the change was held up due to a dispute with Westminster over exempting flights from Highland and island airports.

Mr Borthwick said the exemption would disadvantage Aberdeen.

“What we shouldn’t do is hammer business and leisure travellers with taxes on top of taxes, to provide a fig leaf for government failings on its approach to net zero,” he added.

The SNP and Greens hope an incoming Labour Government will be more receptive to the proposals.

Green MSP Mark Ruskell said: “There’s no credible route to net zero without cutting air miles.”

He urged Labour to work “constructively” with the Scottish Government after the next election, when Sir Keir Starmer is expected to take power.

A UK Government spokesperson said Holyrood was “wholly responsible” for implementing the levy.

The SNP had previously suggested cutting taxes on flights when initially proposing the new departure tax.

But those plans have since been abandoned due to the fight against climate change.

‘Extraordinarily difficult’

Chris Stark, chief of the UK climate change committee, raised concern on Tuesday over future environmental policy goals in Scotland.

He said it will be “extraordinarily difficult” for the government to reduce the number of kilometres travelled by car by 20% before the end of this decade.

The SNP’s decision to ditch climate targets last week placed the party’s Holyrood power-sharing agreement with the Greens in jeopardy.

Aberdeen-based Tory MSP Douglas Lumsden said the flight tax proposals were an attempt by the SNP to “cover up for their humiliation” over last week’s U-turn.

He said: “Passengers from Aberdeen shouldn’t be punished for using air travel due to the high cost of trains and unreliable ferries and buses.

“This tax would be a hammer blow to Aberdeen Airport.

“In addition, this will significantly penalise workers in key industries such as oil and gas and finance who rely on flights from Aberdeen to places such as London.”

A Scottish Government spokesperson said: “Ministers understand the importance of helping grow connectivity for businesses, exports, tourism and the economy as a whole.

“They also recognise air departure tax could and should make a contribution to reducing emissions from the aviation sector.

“High-level principles of the tax, including how it will support emissions reductions and protect connectivity, will be set out and more detailed policy development will take place in due course.”