Exeter Airport to benefit from tax cuts but Chancellor's Budget announcements not welcomed by everyone

Those flying from Exeter Airport will see air passenger duty halved from 2023 – a move that has been celebrated by some local politicians and described as "catastrophic" by others.

In his budget announcement, Chancellor Rishi Sunak said that, from April 2023, the tax will be cut from £13 to £6.50 for domestic flights.

The Treasury believes this will give the UK airline industry a much-needed boost by making air travel cheaper for about nine million UK passengers.

But, just days ahead of the COP26 global climate change conference, critics have pointed to the devastating impact of flying on the environment.

According to Climate Change Committee (CCC), an independent, statutory body that reports to parliament, aviation emissions accounted for seven per cent of all UK greenhouse gas emissions in 2018 and 124 per cent above 1990 levels.

Conservative East Devon MP and member of the government's Transport Select Committee, Simon Jupp, said he was "delighted" by the news of the cut.

He's been campaigning for the reduction to help support Exeter Airport, based in his constituency, which suffered the collapse of Devon-based airline Flybe before the coronavirus pandemic hit.

He also praised the announcement that financial support for English airports, put in place because of the pandemic, would be extended for a further six months.

Mr Jupp said: "It shows that the chancellor recognises the challenges currently facing regional airports as we emerge from the pandemic.

"Exeter Airport helps to keep our region connected and competitive and I'm delighted that my campaign helped to make a difference."

But Councillor Diana Moore (Greens, St Davids), co-leader of the Progressive Group at Exeter City Council, slammed the decision.

Flies in the face of climate leadership

She said: "This is a huge own goal for the Tories just days before COP26. It absolutely flies in the face of any attempt by the government to show any kind of climate leadership.

"The prospect of making flights between Exeter and London even more economically viable is really catastrophic at a time when we face such a huge climate crisis.

"We don't need to fly to London for meetings or go off on short trips for our second homes. What we really need in the South West is an affordable rail network and we need serious investment in the bus network.

"That will bring greater benefit to rural people and reduce pollution and congestion in Exeter and provide greater levelling up and connectivity. If we're serious about jobs and serious about the environment we should not be investing in Exeter Airport."

Flights are not currently available between Exeter and London. The last airline to provide such a service was Flybe before it went bust, causing the loss of thousands of local jobs, both directly and in the supply chain.

Scottish airline LoganAir and one serving the Channel Islands, Blue Islands, have picked up some of Flybe's former routes, but passengers numbers at Exeter Airport are still well below pre-pandemic figures.

Whilst some people fear for the industry's viability, Labour is concerned at the tax cut for flying.

Speaking earlier this week, Shadow Chancellor Rachel Reeves called the Chancellor's decision to cut air passenger duty just days before the UK hosts the COP26 climate summit "astonishing", adding: "Bankers on short-haul flights sipping champagne will be cheering today."

The CCC recently argued  that the government's proposals for air passenger duty were "largely going in the wrong direction." It called for both higher taxes on flights and subsidies for trains.

Taxes on long-haul flights to rise

However, this week's budget wasn't all good news for the airline industry. Although flights within the UK will be getting cheaper, air passenger duty on long-haul flights above 5,500 miles will rise.

From 2023, the tax for economy seats on these journeys will increase to £91 and to £200 for other classes. People will be able to get to the USA and Canada without paying the increase, but not South Africa or Australasia.

Environmental campaigners argue that a reduction in flying is essential for reaching climate targets. It's thought a single seat on a return flight between London and New York emits the equivalent of around 1.7 tonnes of carbon dioxide, approximately a third of the yearly average CO2 emissions for a person in the UK.

Airlines claim that it is better for the environment if flights are full and that investments are made in technology.

Exeter Airport has been involved in test flights using hybrid-electric aircraft. A company called Ampaire has flown between Exeter and Newquay on a trial aiming to develop greener aviation.

It is part of a consortium working on a '2ZERO' which hopes to launch electric aircraft serving regional routes in the South West in 2024.