The Government notes the Committee’s recommendation. Air Passenger Duty (APD) is a UK-wide tax, and the Highlands and Islands exemption from APD is a long-standing derogation from it. Successive Governments have recognised the importance of the exemption for maintaining lifeline air services to some of the most remote communities in the UK. The Scottish Government’s plans to replace APD with a devolved tax, Air Departure Tax (ADT), are long standing. Any changes to the Highlands and Islands exemption are ultimately a matter for the Scottish Government, should they introduce ADT.