In a sign of the Prime Minister’s commitment to levelling
up all regions of the UK, the government has announced
additional measures to support regional connectivity across
the UK, to ensure all corners of the country drive the
economy, and fully benefit from prosperity in years to
come.
A review of regional
connectivity will ensure all nations and regions
of the UK have the domestic transport connections local
communities rely on – including regional services from
local airports. This review, led by DfT, will consider all
options to ensure we continue to have good regional
connectivity. The DfT will work
closely with the aviation industry, local regions and
devolved nations to identify how we can support
connectivity.
As part of this work and ahead of the March Budget, the
Treasury will also be reviewing Air Passenger Duty
(APD) to ensure
regional connectivity is supported while meeting the UK’s
climate change commitments to meet net zero by 2050.
The outcomes of these reviews will benefit the entire
industry, passengers, communities, regions and nations
across the UK.
These measures featured in discussions between the
Department for Transport, the Department for Business,
Energy and Industrial Strategy and HM Treasury and Europe’s
largest regional airline, Flybe, which plays an important
role in the UK’s connectivity.
HMG was
notified about the difficulties of Flybe on 11 January, and
since then we have worked intensively with the company to
understand their financial position and explore options. In
the light of these discussions the management and
shareholders on 14 January took action to set Flybe on a
recovery path.