Bristol Airport Avoids Paying Tax

bristol | the environment | press release Friday March 27, 2009 17:55 by SBAE - Stop Bristol Airport Expansion email at stopbia dot com

The truth about airport economics

Bristol International Airport has been accused of avoiding paying corporation tax in the UK, in a new video posted online by Stop Bristol Airport Expansion. The video also highlights the economic costs of airport expansion, including jobs and revenue which are lost to tourist destinations overseas.

Bristol International Airport has been accused of avoiding paying corporation tax in the UK, in a new video posted online by Stop Bristol Airport Expansion. The video (see www.stopbia.com) also highlights the economic costs of airport expansion, including jobs and revenue which are lost to tourist destinations overseas.

Company accounts filed by South West Airports Limited (part of the Macquarie Group) show that although Bristol International Airport had an operating profit of £24 million in 2007, it does not pay corporation tax because the profits are used for the repayment of shareholder loans [1].

Stop Bristol Airport Expansion (SBAE) says the company - which has also received subsidies from the SW Regional Development Agency [2] - has structured its accounts to minimise its tax liability.

Jeremy Birch from SBAE said:
“You’d think that Bristol International Airport would be making a substantial contribution to the UK public purse, but in reality it has gone to considerable lengths to avoid doing this. Of course, there is nothing illegal in avoiding tax in this way - but it does show how little the airport contributes.”

In the video, Birch also claims that the airport is responsible for driving money out of the local economy, with more passengers flying out of the airport for overseas holidays than visiting the UK. The result, he says, is a tourism deficit which is hurting the tourist industry, particularly in the South West region.

There are six to ten times more UK-based passengers using the airport than foreign visitors flying here.

The video says this tourism deficit is responsible for job losses in the UK tourist industry - with as many as 14,000 jobs lost as a result of the deficit in 2008 - as more and more people spend weekend breaks overseas.

Birch said:
“People often assume that expanding the airport will be good news for the local economy but in reality, that is not the case. Businesses already have good links from the airport - and these are unlikely to improve. Expansion will really mean more money flying out of Bristol - and the local economy will pay the price.”

The full video can be seen online at www.stopbia.com