Duty on fuel and flights increases in campaign to cut emissionsAir passengers will pay an extra £1 billion a year in tax to help to pay for the environmental cost of their journeys, the Chancellor announced yesterday. Air passenger duty will double on bookings made from February 1, ending a five-year freeze. The rates for flights within Europe will rise from £5 to £10 for economy class and £10 to £20 for business class. On long-haul flights to destinations outside Europe, the tax will rise from £20 to £40 in economy and £40 to £80 in business and first class.
Mr Brown said that the increase would reduce carbon dioxide emissions from aviation by 1.1 million tonnes a year. Motorists will pay the first increase in fuel duty for three years, up in line with inflation by 1.25p a litre from today, pushing the average price of petrol up to 88p a litre.
Mr Brown said that both tax increases were designed to reduce harmful emissions from transport, but the Treasury refused to give details of how they would affect demand for travel. Airlines and motoring groups said that the extra taxes were revenue-raising measures that would do little to reduce demand and have minimal impact on the environment.