Current status: Answered by Shona Robison on 12 November 2025
To ask the Scottish Government what discussions it has had with the Competition and Markets Authority regarding the introduction of an exemption from Air Departure Tax for lifeline services.
Devolved Administrations are required to refer subsidies to the Competition and Markets Authority's Subsidy Advice Unit where any proposed subsidy has a value over £25million cumulative over three financial years. The Scottish Government does not anticipate that the cost of exempting the carriage of Highlands and Islands passengers from Air Departure Tax (ADT) is likely to exceed this cost threshold. However, policy costings for prospective ADT reliefs and exemptions will be kept under review.
We are 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. I corresponded with Justin Madders MP, the then Minister for Employment Rights, Competition and Markets, on subsidy control matters and we will consider future engagement with the CMA accordingly.