Heathrow Airport: Air Passenger Duty

To ask the Secretary of State for Transport pursuant to the Adding Capacity at Heathrow Airport consultation document, Annex B Impact Assessment Options 1, 2 and 3, what amount of air passenger duty government tax revenue benefit was included as part of the key monetised benefits calculation for each option; and if she will make a statement. (179438)

[holding answer 16 January 2008]: The breakdown of the monetised benefits from each option in the “Adding Capacity at Heathrow Airport” consultation document is given in table 4.3 (p79) of “UK Air Passenger Demand and CO₂ Forecasts”, available at:

http://www.dft.gov.uk/pgr/aviation/environmentalissues/ukairdemandandco2forecasts/

The following table reproduces the figures for the three consultation document options. The “government” row of this table reports the estimated additional air passenger duty expected from each option.

*Adding Capacity at Heathrow Consultation: Breakdown of transport user benefits by option*
£ billion, NPV, 2006 prices
Option	One	Two	Three
Generated users	9	9	9
Existing users	¹—	¹—	¹—
Freight users	¹—	¹—	¹—
Producers	5	5	5
Government	3	3	3
Carbon	-5	-5	-5
Noise	¹—	¹—	¹—
Delay Reductions:
Users	²—	1	2
Carbon	²—	¹—	¹—

Total	12	13	14
¹ A non-zero impact is estimated, but the result rounds to nought at zero decimal places. ² No impact has been estimated. Note: Figures are rounded to zero decimal places.

Volume 471: debated on Monday 28 January 2008