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A focus on economics

May 5, 2011

In the wake of the 2011 Budget, April has seen us working on a number of economics issues. Following their invitation for us to give oral evidence to their inquiry, we met with the Environmental Audit Committee – a group of MPs set up to monitor whether government policy meets environmental objectives and promotes sustainable development. The Committee is addressing issues arising from the Budget, including whether there has been sufficient consultation on air taxes and environmental costs, and what steps should be taken to manage demand for air travel.

We have also been working on our response to an EC consultation on VAT (currently no VAT is levied on sales of aircraft or air tickets) and to a UK consultation on the reform of Air Passenger Duty, including how the tax could be extended to cover business jets.

Looking more widely at aviation issues, we attended a meeting to discuss possible next steps for the Omega partnership, which brought together a number of UK universities to conduct fresh research on aviation’s environmental impacts, and met with the Department for Transport to discuss the new aviation policy scoping document.

Finally, we have also continued to advise and support our members, including on how to interpret PSZ policy, and how to be involved in planning decisions affecting airports.