ONE of the biggest problems facing the Government is a lack of growth in the economy, which has performed badly in relative international terms since the banking crises of the late 2000s and early 2010s. Consequential demands for higher Government spending in many areas of national life has led to increased taxation to provide the funds. Despite that, the Office for Budget Responsibility is predicting a budget deficit of £132 billion in the current financial year, which is roughly similar to the total education budget.
Transport plays a big part in enabling economic growth and recovery from the Covid-19 pandemic. This applies to all possible modes, including airline routes, which is behind the Government’s thinking for its surprise announcement to cut air passenger duty (APD) for domestic services by half to £6.50 per journey.