Blackpool Airport: Public Service Obligation Funding

Debate between Robert Courts and Mark Menzies

Tuesday 6th December 2022 Westminster Hall

[Mark Menzies (Fylde) (Con)]

I beg to move,

That this House has considered public service obligation funding and Blackpool Airport.

As always, it is a privilege to serve under your chairmanship, Mr Gray. Blackpool airport has a long and proud history—from hosting the UK’s first official public flying meeting to playing its part in the war effort as RAF Squires Gate. During peacetime, the airport’s focus turned to private and commercial aviation. The arrival of low-cost air travel in the early 2000s saw the airport truly take off and resulted in a fivefold increase in passenger numbers, which peaked at more than 500,000 in the late noughties.

Changes in ownership and contractual issues with airlines triggered a period of decline. Passenger numbers halved from the peak of 500,000 in 2014, and that year saw the last commercial flights from the airport. Since then, I have fought to preserve the site’s viability for scheduled passenger flights, including by opposing development that would have left the airport with a shortened runway. The airport is now owned by Blackpool Council, which has brought much-needed stability and security. I share the ambition of the airport team to use the Government’s enterprise zone investment to make the most of the site. That includes exploring how scheduled passenger flights can return.

In June this year, I welcomed the then Prime Minister to Blackpool airport, along with my hon. Friend the Member for Blackpool South (Scott Benton). Prior to that, in March, I hosted a visit from the then Transport Secretary, who is now the Business Secretary. Most recently, the Northern Ireland Secretary visited the airport. On all three occasions, we highlighted the potential of Blackpool airport and discussed the possibility of kick-starting the revival of passenger flights. Nobody is expecting the immediate return of major airlines flying holidaymakers to the Costas, but there are opportunities to explore historic and important connections that will not only greatly benefit Blackpool but improve transport links between the regions of the United Kingdom.

Public service obligation routes are connections to which the Government provide substantial subsidies that open up routes that would otherwise not be commercially viable. Current UK Government rules dictate that PSO flights must be between London and a regional airport. That does not apply to devolved Governments, and Scotland has been particularly effective at using PSOs to support connections between the central belt, highlands and islands. I checked this morning and found that Blackpool airport is slightly more than an hour’s drive from Manchester and Liverpool airports, and therefore qualifies for PSO flights to London.

PSO flights would make it easier for people in Lancashire to travel for business, leisure or onward connections and would support the Government in delivering on the levelling-up promise to coastal communities, such as those I serve in Fylde. However, this must be about more than just improving access to London. The approach of focusing solely on London is out of tune with the Government’s commitment to levelling up and the future of our Union. Airports in London and the south-east have long struggled with runway capacity.

I want the PSO rules to change to allow a shift in emphasis to connecting our nations and regions. Indeed, that idea is supported by Sir Peter Hendy, who lists it among his recommendations in the Government’s Union connectivity review. As Sir Peter points out in the review, new regional PSO routes would likely be cost-neutral to the Treasury. This opportunity to boost regional growth, support levelling up and bolster links within the Union should not be missed.

[Robert Courts (Witney) (Con)]

My hon. Friend is making extremely powerful points. The House will know that I was Aviation Minister until the summer, and I was lucky enough to visit his outstanding airport and meet the energetic team there. I can see how important it is to his area.

He mentioned a couple of points that also have national importance, particularly that of PSO policy connecting not just with London but between regions. PSOs traditionally rely on subsidy—

[Robert Courts]

I beg your pardon, Mr Gray. Has my hon. Friend considered the role that targeted air passenger duty relief—not a direct subsidy, but targeted APD relief —could play on routes that are non-operational or marginal?

[Mark Menzies]

I thank the former Minister for his intervention; he brings some important material to the debate. I hope the Minister will consider that sort of targeted APD relief in his response. It opens up another way to support the recommencement of flights from Blackpool to airports around the United Kingdom, which is incredibly important.

I return to the point I was making. As Sir Peter points out in his review, new regional PSO routes would likely be cost-neutral to the Treasury. For example, Blackpool Airport has historic links to Northern Ireland, with a route to Belfast the last route to run commercially from the airport; it ended only because of contractual and licensing issues with the operation.

Blackpool has numerous advantages over alternatives in the north-west, being cheaper to operate from than Manchester and Liverpool. Given its proximity to the airport enterprise zone in my constituency and Blackpool town centre, there is a real possibility of desk-to-desk travel time of little over an hour and half for Anglo-Irish business. PSO routes to places such as Belfast and Londonderry could potentially be the first steps towards greater regional connectivity to places such as Scotland, and in particular the central belt, which has strong cultural and economic ties to Blackpool.