UK Transport Secretary Chris Grayling has weighed in on the row over the future of tax-free flights from the Highlands and Islands – accusing Scottish ministers of “failing to deliver” on their promises.
He was quizzed on the issue at Westminster after SNP Finance Secretary Derek Mackay claimed the UK Government had left a “mess” for Holyrood to resolve over the future of air passenger duty.
A new, devolved Scottish tax on flights was due to come into force in April, but Mr Mackay told MSPs this month that it could be delayed because an exemption enjoyed by the Highlands and islands since 2001 may not comply with EU law.
To try to resolve the issue, he has written to the UK Government asking it to pick up the £320million bill for maintaining the discount.
In the Commons this week, SNP transport spokesman Alan Brown said: “The Scottish Government have not been able to cut air passenger duty because the UK Government have not properly implemented an exemption for Inverness airport.”
But the transport secretary responded: “The honourable gentleman makes his comment about air passenger duty in Scotland, but we did what the Scottish Government asked: we devolved air passenger duty and they have not cut it.
“I am afraid that they are discovering the realities of government. It is all very well making demands from the opposition benches, but when they actually have to take tough decisions, they discover that it is not all that easy.
“We are seeing that they are failing to deliver for the people of Scotland.”
The Press and Journal previously reported how the UK Government could privately back devolving the tax to Highland Council in order to maintain the discount and avoid intervention by the European Commission, although it would be a decision for the Scottish Government.
Asked if the such a devolution of the tax powers would be considered, a Scottish Government spokeswoman said yesterday: “We are doing everything we can to protect the economies of the Highlands and Islands.
“The finance secretary wrote to the financial secretary to the Treasury on 5 October outlining our proposals to ensure the successful devolution of Air Passenger Duty, while maintaining the longstanding exemption for the Highlands and Islands. We await a response from the Treasury.”
