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Finance Bill

This has been a useful debate. The hon. Member for Wycombe (Mr. Goodman) opened it and made several references to our earlier debates on this matter in relation to air passenger duty. He also quoted from House of Commons Library briefings about precedents for the proposals. In general, such briefings are very accurate, useful and reliable, but in this case I take issue with the quote that he used, although he may have done so selectively. I have given a number of precedents to explain the proposals and to demonstrate that there is nothing novel about the decisions on air passenger duty taken in the pre-Budget report. Those precedents match precisely what has happened with that duty: in each case, measures were introduced that had an effect on duty tax points before they were considered by Parliament—but after the Government had made a clear announcement to Parliament of their intention to introduce them. I am glad that the hon. Member for Wycombe said that he was not against retrospection per se, but I remind him that the decision on air passenger duty that we announced in December’s pre-Budget report was not retrospective. It was pre-announced: the pre-Budget report documents made it clear that the new rates would apply to passengers travelling on or after 1 February. It was a departures tax, not a ticket tax or a booking tax. Of course, questions arose in respect of flights booked before 6 December, when my right hon. Friend the Chancellor made his announcements, but airlines had two months’ notice before the new tax rates came into force. The airlines have been liable for the air passenger duty since 1993. They are responsible for its payment and free to choose—as they did in February—whether and how to pass their costs on to passengers.