The chief executive of Glasgow Airport has welcomed suggestions that the UK could cut air passenger duty (APD) on domestic flights in a bid to boost internal links in the wake of Brexit.
A consultation will be launched this spring following publication of the interim Union Connectivity Review carried out by a panel of experts led by Network Rail chairman Peter Hendry. The review is aimed at improving road, rail, sea and air links to boost parts of the country that feel left behind.
Derek Provan, chief executive of Glasgow Airport owner AGS, welcomed the move to reduce what he described as a "regressive tax".
“As one of the UK’s largest regional airport groups, we have stated all along that APD is a barrier to growth," he said. "The world has changed dramatically as a result of Covid-19 and the routes and services that play a critical role in supporting our economy have been devastated.
“A reduction in domestic APD is a welcome first step towards rebuilding the UK’s domestic connectivity as we work towards the safe return of international travel and getting the economy moving again.”
APD raised an estimated £3.7 billion in 2019 for the government. Airlines have long opposed the tax, which they say is the highest Europe by a long way and they want a suspension across the board, not just an internal cut.
The tax is charged per passenger flying from a British airport to both domestic and international destinations in bands that take account of distance and class of travel.
The new consultation will consider options such as the introduction of a return leg exemption, creating a new lower domestic level and increasing the number of international distance bands.
Restaurant Group reveals latest toll from lockdown restrictions
The owner of the Chiquito, Wagamama and Garfunkel's restaurant chains is planning to raise £175 million after posting a bigger loss due to a hit to its business from the UK's latest round of lockdowns.
The Restaurant Group (TRG) made a pre-tax loss of £87.5m during the year to December 27, compared with £47.9 pounds a year earlier, and said its near-term outlook remains uncertain due to restrictions.
TRG has permanently shut 250 restaurants and cut around 3,000 jobs, highlighting the troubles in the hospitality industry.
“The capital raise announced today, alongside the debt re-financing announced last week, represents the last important step in our re-structuring process,” chief executive Andy Hornby said.
While all of its sites are shut for dine-in, the company said its delivery and takeaway sales at Wagamama more than doubled from pre-pandemic levels for the four weeks ended February and were up five times for its leisure sites.
The company, which last year raised around £57m to weather the crisis, said it would raise fresh funds by issuing 95.9 million new shares to investors at a price of 100 pence each.
It will also issue 79.7 million new shares to existing shareholders by offering them five new shares for every 37 existing shares, also for 100 pence per share.
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