Finally, An Argument For Scottish Independence

One world, but many more favourable aviation tax regimes
One world, but many more favourable aviation tax regimes

 

Finally, a positive reason to vote for Scottish independence in the September referendum, and it comes not from Alex Salmond, the SNP or the Yes to Independence movement. It comes, instead, from that most iconic of companies, British Airways.

The Telegraph reports:

Asked about the Scottish referendum on BBC Breakfast, Mr Walsh said: “If anything, it might be marginally positive because, I suspect, the Scottish Government will abolish air passenger duty because they recognise the huge impact that tax has on their economy.” 

He added: “So, it is probably going to be a positive development, if it does happen, for British Airways.” 

The Scottish Government’s White Paper – the blueprint for independence unveiled last November – proposed a 50 per cent reduction to air passenger duty. 

It said Westminster’s refusal to devolve the power had “hampered our ability to attract new direct flights” and said halving the tax would boost Scotland’s international connections.

This argument from Walsh is quite unassailable. The punishingly high level of Air Passenger Duty make the UK one of the most expensive places to fly from, or through, in the world. The government may whine that they need to be seen to be doing something for the environment, but as with all other taxes the revenue goes into the same big pot to be frittered away on the same wasteful expenditures – certainly nothing to do with environmental protection or carbon offsetting.

While the UK government wrings its hands and does nothing as Britain’s disjointed aviation policy stymies economic growth, at least the Scottish Government wants to attract business and tourism rather than repel them.

But what we really have here is not an argument for Scottish independence – though BA’s chief executive rightly notes that his particular company would perform marginally better if independence came to pass. Rather, it is an argument for a more enlightened and business-friendly aviation policy, and/or for greater devolution of tax matters within the UK. It would do the UK government great good to see lower aviation taxes bringing economic benefits north of the Scottish border, and perhaps chasten them into lowering air passenger duty throughout the rest of the country.

This intervention by Willie Walsh is being hailed by Alex Salmond and the pro-independence movement, and it certainly comes as a welcome respite from what has been a non-stop volley of bad news and negative endorsements as business after business has raised concerns about the prospect of Scottish independence and the damage caused by the current uncertainty.

But as a justification for splitting up the United Kingdom, it lands well short of the runway.

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.