Opposing cuts to air passenger duty is yet another way the London elite disregards the rest

In principle, changing the tax system to rescue on airline is a terrible idea. In practice, it might be very wise

The government has agreed a deal to rescue Flybe. While the stopgap seems to be pumping more shareholder money into the failing regional airline, a more lasting solution presents itself – tax reform.

In principle, it sounds a terrible idea. The airline is a commercial company backed in part by Sir Richard Branson’s Virgin Group. The tax in question, Air Passenger Duty, was brought in by Ken Clarke but later championed by Labour chancellor Gordon Brown as a “green levy” to curb carbon emissions from the airline industry. And Boris Johnson’s government did not do anything to rescue the much larger Thomas Cook Airlines, part of the travel group, last year. Some people caught up in that collapse are still waiting for refunds.

Bad in principle, then, but maybe wise in practice. The idea that taxation should be crafted so as to support wider social and economic objectives is at the core of all public policy. So governments give tax incentives to invest in business start-ups, such as venture capital trusts, and for people to save for pensions. And they impose taxes on activities they wish to discourage, of which Air Passenger Duty is a prime example.