Current status: Answered by Shona Robison on 12 November 2025
To ask the Scottish Government what its position is regarding whether an exemption from Air Departure Tax for lifeline services would be compatible with the UK Subsidy Control Act 2022, or if amending the Act would have to be a prerequisite to resolving the issue reportedly currently preventing the replacement of Air Passenger Duty with Air Departure Tax.
I exchanged correspondence with Justin Madders MP, the then Minister for Employment Rights, Competition and Markets, who advised the Scottish Government that providing a specific carve out from the Subsidy Control Act 2022 for the Highlands and Islands exemption is not possible.
The Scottish Government must ensure that the granting of tax exemptions and reliefs from ADT complies with the Act. We are therefore working with the UK Government to reach a solution for the Highlands and Islands exemption that complies with subsidy control requirements and protects Highlands and Islands aviation connectivity.