The speech made by Mark Menzies, the Conservative MP for Fylde, in Westminster Hall, the House of Commons, on 6 December 2022.
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—
James Gray (in the Chair)
Order. Interventions must be brief.
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.
Scott Benton (Blackpool South) (Con)
My hon. Friend has set out a powerful case for reforming public service obligation routes. I am sure he would agree that the Government have a good record on regional aviation so far, not just with the cut to air passenger duty but with the measures in the 10-point aviation plan and the regional connectivity review. However, Blackpool Airport is owned and run by Labour-run Blackpool Council. Does my hon. Friend agree that the council must do far more to look for opportunities to develop the airport and regional flights?
Mark Menzies
My hon. Friend makes an important point, in that the airport is owned and run by the council. Much of that I welcome, because under the previous private ownership there was a danger of that asset being run into the ground and developed for non-airport-related purposes. That would have been of great concern to me. There is an opportunity now for the Government to work in conjunction with the council to raise the ambition of the airport owners—the council—to seek ways to stimulate and bring forward flights from the airport. I am sure my hon. Friend and I will work with all parties to try to secure that.
Teesside Airport is a possible destination and an inspiration for what a future Blackpool Airport might look like. I believe the PSOs can be a vital catalyst and a first step towards the return of flights from Blackpool, ultimately to continental Europe. Importantly, those opportunities may not be seen as contrary to environmental commitments. Just last week, easyJet and Rolls-Royce trialled the first jet engine powered by hydrogen, providing a glimpse of a lower-carbon future. Blackpool Airport has ambitions to be a leader in sustainable short-haul aviation, be that through electric and hydrogen-powered aircraft or innovation through new low-carbon fuels. The airport is keen to include electric charging and hydrogen fuelling infrastructure in its redevelopment plans.
Regional airports, such as Belfast and Londonderry, are within the range of the generation of electrical aircraft in development. Currently, the opportunity to introduce those on a commercial basis is very much on the horizon. As we look to a low-carbon future, Blackpool provides a fantastic opportunity to support and showcase the development of a clean, green short-haul flight technology.
Furthermore, as Lancashire continues to grow as a green energy hub, with its strategic location on Britain’s energy coast for wind and tidal power, and its position in the north-west nuclear arc, we can use the flights to connect other areas, leading to the technologies of the future. There are 41,000 workers in the energy and environment sector in Lancashire. Those industries have a significant footprint for Scotland and the north-east of England and will continue to grow in future decades. The Fylde coast is already training the next generation of engineers in those industries at the renowned Blackpool energy college which, incidentally, is located on the site of the former terminal building.
Beyond the Fylde and Blackpool, the airport’s location gives it great onward connections to Lancashire and the wider north-west, as it is just minutes from the M55. The south Fylde line stops several hundred metres away, giving quick access to Lytham St Annes and Kirkham in my constituency, as well as onwards to Blackpool and Preston, the latter providing connections on to local Lancashire services, the west coast main line, and the future High Speed 2.
Blackpool airport is a fantastic asset for Lancashire, with potential to support its manufacturing and energy sectors, as well as its fantastic tourism sector. Its closure to commercial flights remains a key issue locally, and residents the length and breadth of the Fylde coast continue to push for their return. The team at the airport have the drive and vision to get this off the ground. They are eager to make a success of the airport, embracing new low-carbon technologies and the opportunities that they present. An initial terminal building may not need to be large—just sufficient to get passengers checked in and safely on to their flights, as part of a longer-term vision to add further routes and investment to the airport’s infrastructure. We have seen that work elsewhere, and it can work again at Blackpool airport.
Levelling up, strengthening our Union and the drive for net zero are at the very heart of the Government’s mission. With a little help to get things off the ground, Blackpool airport can support all three objectives. All that is required are small tweaks to the rules surrounding PSOs, combined with relatively minor investments and alternative support, such as targeted relief on air passenger duty for routes from small regional airports—again, estimated to be cost-neutral to the Treasury. This is a good opportunity, and we should not pass it up. I know that the Minister will recognise that, and I hope that he will take the steps required to reinvigorate Blackpool airport.
