TPS has organised a debate on aviation policy with speakers supporting regional airports, Heathrow expansion, the Mayor’s new ideas for a London airport and managing demand instead of providing for endless growth. It will be held on the evening of 18th September at One Great George Street. Download a flyer by clicking here.

As background TPS has recently released its recent submission to the Davies Commission. In it, TPS is calling for a new approach to improve aviation taxation, for example:

• moving to a per plane tax based on maximum take off weight (thus including air freight),
• a noise charge related to numbers affected, or
• a congestion charge for London and South East airports.


The latter two would help to encourage regional airport use.


Only after environmental costs have been taken into account in air travel prices, and demand managed as other modes of transport are, will it be possible to know if, and where, any new airport capacity is required.

The document (available by clicking here) also points out that the majority of air travel is for leisure purposes, and claims for the importance of aviation to the economy fail to distinguish sufficiently between the aviation industry and the air travel industry in their analysis. The detrimental impact on the balance of payments of foreign leisure travel is not taken into account, including the serious loss of sales tax revenue from UK residents travelling abroad.


Neither is there full consideration of issues such as ensuring that aviation pays its fair share of general tax (it is zero rated for VAT and pays no fuel duty), as well as paying for the serious impact of the environmental damage which it causes. The evidence shows clearly how noise problems, particularly at Heathrow, have a major impact.

The response also includes preliminary results from the TPS annual member survey (% score below), which asked:


Aviation policy is becoming a major focus for Government. In this context, which of the following is closest to your view?

• South East airports are reaching capacity and must be expanded (28%)

• Airport investment should focus in the regions to support growth there and not in the South East. 
(30%)
• 
If air travel were taxed at the same rate as other goods, or to fully reflect its environmental impacts, demand would fall and new capacity would not be needed. (42%)