Commons Sense

House of Commons · Westminster Hall

Blackpool Airport: Public Service Obligation Funding

06 December 2022 · 2 other contributors · 3,620 words

Opened by Mark Menzies Con Fylde

Responding minister: Jesse Norman

Transport

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Mark Menzies raised concerns about blackpool airport: public service obligation funding in Westminster Hall. A government minister responded.

Key points

  • Mr Menzies is concerned about the decline of Blackpool airport since the late 2000s and seeks revival through public service obligation funding.
  • Mr Menzies highlights the airport's strategic location and potential role in sustainable aviation technology.
  • Mr Menzies asks for changes to PSO rules to allow flights connecting regions beyond London and proposes targeted relief on air passenger duty for regional airports.

Key requests to Government

Mr Menzies asks for changes to PSO rules to allow flights connecting regions beyond London, suggesting routes from Blackpool to Belfast and Londonderry. He also proposes targeted relief on air passenger duty for regional airports, which he claims would be cost-neutral to the Treasury. This move is seen as essential for stimulating flight restarts at Blackpool Airport.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Mark Menzies Con Fylde

Mr. Menzies is concerned about the decline of Blackpool airport since its peak in the late noughties with over 500,000 passengers and seeks to revive it through public service obligation funding. He highlights the airport's historic significance and current ownership by Blackpool Council, which provides stability and potential for growth. Mr. Menzies emphasises the airport's strategic location, connecting regions across the UK, and its potential role in sustainable aviation technology. He also points out that Blackpool has advantages over other airports like Manchester and Liverpool due to cost savings and proximity to key infrastructure such as the M55 motorway.

Other contributors (2)
  • Robert Courts Con Oxford West and Abingdon

    Intervened to suggest that targeted air passenger duty relief could play a role in supporting non-operational or marginal routes, adding to the points about PSO policy connecting regions. The Minister makes a good point about the 50% Air Passenger Duty cut. However, Robert Courts is focused on what he terms open PSOs, which are not further Treasury subsidies but removal of APD on non-operational routes where no revenue or minimal revenue is generated. He believes there is an opportunity for business growth in these areas.

  • Scott Benton Con Blackpool South

    Asked whether Blackpool Council should do more to develop the airport and regional flights despite the Government's efforts on reducing air passenger duty and introducing measures in the 10-point aviation plan. My hon. Friend Scott Benton highlights that the airport's current ownership by Blackpool Council provides stability and an opportunity to raise ambition for flights from the airport, working in conjunction with the Government.

Government Response

Jesse Norman

It is a delight to see you in the Chair, Mr Gray. I am also delighted to respond to the very good speech and useful interventions made by my hon. Friends the Members for Fylde (Mark Menzies), for Witney (Robert Courts) and for Blackpool South (Scott Benton). Within the Department for Transport we recognise the importance of Blackpool airport to the region. We also recognise it as the centre of the Blackpool airport enterprise zone, set up as a hub for business, medevac, flying schools and general aviation. Airports themselves have a key role to play in developing the business case for new commercial flights with local partners. There is no bespoke funding or support from Government for new routes but there is support for domestic connectivity through a 50% reduction in domestic air passenger duty. The PSO policy as it presently is set up is designed to support routes that have previously been operated commercially or are now at risk of being lost, not new flight. If and when a PSO is granted under the current policy, there must then be a procurement exercise to find an airline, which, in turn, needs to be a full and open tender for selection. The subsidy provided is based on the airline's operating losses on that route, which it must submit as part of a tender bid. We are exploring further opportunities to utilise PSOs in order to support regional connectivity and the levelling-up agenda. Now that the UK has left the EU, there is an opportunity for the Government to legislate to improve the slots system to ensure it provides the connectivity that UK passengers need. Regional airports play an important role in levelling up by providing business opportunities through supply chains and other enterprise engagement.

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