ABTA has welcomed a Treasury announcement that it is looking at three options to lessen the impact on regional airports of any reduction in air passenger duty in Scotland.
It said it would ‘engage fully’ in the discussion paper announced as part of the Budget, but head of public affairs Stephen D’Alfonso repeated ABTA’s call for a full economic review leading to ‘significant’ reductions in the tax.
And the British Air Transport Association said it was disappointing the Government had failed to ‘properly address the damaging impact of APD in the Budget’.
BATA chief executive Nathan Stower said: "The Government has missed a big opportunity to boost trade, tourism and competitiveness. This is disappointing when detailed independent economic analysis suggests that its abolition could increase economic growth, create up to 61,000 jobs, and pay for itself through higher revenues from other taxes.
"With the Scottish Government committed to halving APD following devolution of the tax, followed by full abolition, the status quo is going to become economically and politically unsustainable.
"Indeed, the Treasury has also today published a ‘discussion paper’ looking at possible responses in England to devolution of APD. The scope is too narrow and the three options for discussion are fundamentally flawed.
"The Treasury must also consider a significant reduction and abolition of APD across the UK if this review of options is to be credible."
In other Budget news, insurance premium tax is to increase to 9.5% from November, the Government will introduce a national living wage for over 25s of over £9 an hour by 2020, and there will be a new apprenticeship levy for large firms.
Chancellor George Osborne also announced funding for a memorial to the 30 British holidaymakers murdered in Tunisia.
