Blackpool Airport and Levelling Up

Debate between Jamie Stone and Scott Benton

Tuesday 15th March 2022 Westminster Hall

[Scott Benton]

I thank my hon. Friend and neighbour for his intervention. He has been a brilliant friend and advocate of Blackpool airport over many years, and during his work as aviation Minister. From speaking to him in the past, I know that a number of the things he was looking at while in post could support regional airports and help Blackpool to grow, benefiting the local economies of both our constituencies. I know he will be a brilliant advocate and supporter of this campaign going forward.

Regional airports offer quick and easy connections, often at a fraction of the time and cost of rail travel. They are also able to connect us to the furthest corners of our United Kingdom.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

The hon. Gentleman is making an excellent speech, and it is music to my ears. As the Minister is aware, we have had a campaign in the far north of Scotland to do similar work for Wick airport. We have a destination—Aberdeen—which is great, and is a step in the right direction, but does the hon. Member agree that having a choice of destinations helps? In the case of Wick, we are seeking to get Edinburgh or Glasgow included as destinations.

[Scott Benton]

I thank the hon. Gentleman for his intervention. He makes a good point. He will know about the importance of public service obligations, especially in the regional context of Scotland, Northern Ireland and Wales and the work we do in England to match the PSO offers in the devolved Administrations. He will no doubt be championing that for his own constituency.

The Union connectivity review emphasised the need for Government to support journeys too long to be reasonably taken by road or rail. That is especially significant in the case of the devolved Administrations and other parts of our United Kingdom, all of which would benefit hugely from greater links between them. More practically, regional airports offer economic opportunities, increased tourism, better business connections and more investment opportunities, and they provide the chance for unique service delivery, as my neighbour, my hon. Friend the Member for Blackpool North and Cleveleys, alluded to with Blackpool airport.

Where does Blackpool airport fit in the levelling-up agenda, and what can the Government do to support it? As I mentioned, Blackpool airport has been in operation since the 1930s and operated commercial flights through the 20th century. However, the airport really took off—pardon the pun—in the early 2000s, with low-cost airlines such as Jet2 providing routes to international destinations, including Spain and Portugal, and smaller carriers, for example Citywing and Flybe, providing a strong regional network to destinations such as Belfast, Aberdeen and Southampton.

Unfortunately, following the financial crisis of 2007, passenger numbers began to fall and the operator of the airport, Balfour Beatty, ran into financial difficulty. Despite a number of routes still being well attended and the airport being used by over 200,000 passengers per year, in 2014 Balfour Beatty decided to put the airport up for sale. Sadly, a buyer could not be found and a subsidiary of Balfour Beatty purchased the airport and reduced operations, ultimately leading to the end of commercial passenger flights.

During this time, a decision was taken to demolish the former passenger terminal, despite protests from local residents. In 2017, Blackpool Council had to purchase the airport to save it from being permanently closed and demolished and to secure its long-term future as part of Blackpool Airport enterprise zone. That allowed for essential infrastructure to be maintained and investment plans to be explored.

Sadly, following my petition to ensure that commercial passenger flights were restored, the Labour council voted against the idea, citing the costs of bringing the airport up to scratch. While I appreciate the large capital cost of modernising the airport infrastructure, there have already been positive movements by the Government to support regional aviation, making investment more appealing. The cut to air passenger duty in last year’s Budget has provided a brilliant opportunity for domestic flights from small airports such as Blackpool. The Government have effectively halved the amount of tax paid on domestic return journeys, allowing people to travel for less. That is much fairer than the previous system, which would charge those travelling domestically more than those flying internationally, despite travelling a much shorter distance and contributing less carbon to the environment. The cut could prove especially beneficial as more people choose staycations rather than holidays abroad following the pandemic.

In the case of Blackpool, our resort is already a great destination for tourists, and exciting future developments assisted by Government regeneration funding will mean that there will soon be even more attractions to offer to visitors. That point has been echoed by many of the tourism and leisure businesses in my constituency. For example, Amanda Thompson OBE, managing director of Blackpool Leisure Beach, has stated:

“Blackpool Airport was a wonderful asset for the town and direct flights to and from London and various European destinations show how important it is to have connectivity to the city and Europe. The resort needs to establish inbound tourism from Europe...as well as from…London—this is needed to encourage investment within the resort and the Airport can help to deliver this.”

The Union connectivity review has provided great insight into how to use regional airports to achieve the Government’s aim to improve transport connectivity and enhance quality of life and economic opportunity across the UK. The report made a number of suggestions that would greatly boost the case for restoring passenger flights to Blackpool airport and increasing the role of regional airports more broadly. Alongside the cut in APD for domestic flights, the report also recommended re-examining the role of public service obligation routes and the way in which they operate.

Currently, PSO routes are eligible for support only if they run to and from London and are exclusively operated by one airline. That has limited their use and has meant that such routes mostly exist outside of England, where devolved Administrations have stepped in. The report recommended liberalising the process to allow PSOs to operate between regions. It also recommended selecting a number of routes that would not have been previously operated and removing APD on those altogether. That would not result in a loss of revenue for the Government as, without the reforms, those journeys would not previously have been made at all. If the reforms were to be adopted, they would offer a great opportunity for Blackpool to offer flights to the Isle of Man, Belfast and possibly even London or Glasgow. Blackpool’s location makes it ideal to serve those routes. I hope the Government will seriously consider that recommendation and explore the policy further in the coming months.

These are positive steps and if properly pursued would allow Blackpool and other regional airports to play a vital part in UK connectivity and levelling up. However, the barrier to Blackpool and many other regional airports in taking advantage of such developments is the need for capital investment. Although the Treasury provides many funding pots, particularly for infrastructure projects, one area not currently covered by any schemes is regional airports. That makes it very difficult for airports such as Blackpool to get off the ground, with local government administrations often unable, or in Blackpool’s case unwilling, to invest sufficient time and money in large projects.

A bespoke scheme to provide capital investment would be very welcome and would allow regional airports to modernise, invest in green technologies and take the pressure away from key hub airports. As there are only 26 regional airports, the fund could be relatively small and could deliver significant improvements quickly, certainly in the case of Blackpool.

I want to address the concerns regarding the environmental impact of flying, especially in the context of the Government’s commitments at COP26. First, it is worth noting that domestic air travel makes up only 1.2% of total domestic transport emissions—a tiny fraction compared with cars, HGVs or trains. I am concerned that in reading reports like the Union connectivity review we are not looking to the future and considering upcoming technology. I was also concerned to see the media backlash following the cut to APD and the calls from newspapers such as The Guardian to ban domestic air travel altogether. Many environmental activists seem content to return to the stone age rather than innovating to maintain our wonderful way of life. For example, the Danish and Swedish Governments are both working with their aviation sectors to make domestic air travel fossil fuel-free by 2030. That is an ambitious target, but we must surely try to improve aviation rather than abandon it altogether.

I welcome the Department for Transport’s jet zero strategy consultation and hope it will lead to constructive discussions with the aviation industry. We are now seeing the development of electric and hydrogen-powered aircraft both in the UK and around the world, and we have already seen low-carbon aircraft becoming more popular. For the technology to continue to develop and become widespread, it will have to be economically viable, and that will mean starting small. Domestic flights with their short airtime and lighter-weight aircraft would provide companies investing in low-carbon solutions with a perfect market for the technology to grow and mature.

I hope that the Government will look carefully at the role of regional airports—Blackpool in particular—in meeting their aims of levelling up, improving connectivity and moving towards net zero. It would be disappointing if, when so many opportunities are being created for regional airports and domestic flying, Blackpool with its long history of aviation and its great location were unable to benefit, particularly from the cut to APD, which could be tremendous for Blackpool’s tourism industry.

I also hope that the Government will look carefully at the reforms suggested in the Union connectivity report, especially the case for the expansion of PSO routes. Blackpool would be ideally suited for connecting to the Isle of Man and Belfast in particular.

Lastly, I hope that the Government will consider the creation of a bespoke funding pot or other targeted support to ensure that regional airports get the support they need to modernise, invest in those green technologies and take the pressure off our busy hub airports.