The Northern Ireland business community has warmly welcomed the Chancellor’s pledge to reduce air passenger duty (APD) on domestic flight which it says will help improve connectivity and grow exports.
The move, announced by Rishi Sunak in the Autumn Budget, will help airlines operating from Northern Ireland’s airports compete with Dublin Airport and others in the Republic where APD was scrapped nine years ago.
It may also woo new airlines or the return of others which saw the tax as an impediment to its operations here.
READ MORE: {}
In August, budget airline Ryanair announced it was stopping all flights from Northern Ireland, citing what it saw as unfair levels of APD in the province.
APD is currently levied at £13 per person flying from a 海角视频 airport each way and it is not yet clear how much the tax will be cut by the Chancellor.
Kirsty McManus, National Director, Institute of Directors Northern Ireland (IoD NI), said the move follows a sustained campaign by the business community.
“The reduction in the Air Passenger Duty rate for domestic flights from 2023, in particular, is a hugely welcome development and follows sustained calls from the business community over many years, she said. “While we would like to see the levy scrapped all together, the reduction will provide welcome relief to our members, many of which rely on the regional air network to connect with colleagues and customers in the crucial Great Britain market.”
Alan Gourley, Director, Tax at business advisory firm Grant Thornton in Belfast, said exporters will benefit from the cut.
Most Read
“In terms of the impact on local businesses, the relaxation in the rate of Air Passenger Duty will of course be welcome news to Northern Ireland-based companies that are heavily reliant on air travel to connect with the GB market,” he said.
Meanwhile, Rishi Sunak also announced a further £1.6 billion in spending for the Executive, an uplift which “will be a shot in the arm for the local administration”, Kirsty McManus said.
“It is incumbent now on Ministers to deliver on the incredible potential it presents, with a focus, through targeted investment in key services and infrastructure, on ensuring this region is fit to capitalise on the green recovery as we continue to emerge from the coronavirus pandemic.”
However, Finance Minister Conor Murphy said the funding, part of the Spending Review, is not enough and creates significant challenges for public services here.
“Years of austerity and more recently the Covid pandemic has placed enormous strain on public services. Our health service in particular is under immense pressure with waiting lists at an unprecedented level," he said. "Workers face an increase in National Insurance and families are dealing with a cost of living crisis as a result of rising food and energy costs.
“This Spending Review was the opportunity to deliver a budget which would have enabled the Executive to rebuild public services and spur economic recovery. However it provides a marginal real terms increase in funding next year which will be far outweighed by increased demands on public services, particularly in light of the ongoing pandemic.”