Archived press release

Budget increase in Air Passenger Tax would not hit poor

12 March 2004

Increasing Air Passenger Duty (APD) in next Wednesday's budget would mainly hit better off people rather than the less well off, and would raise over £400 million which could be spent on local buses and better trains, Friends of the Earth claimed today.

A £5 increase in APD on all air tickets would raise over £400million (1) but industry figures show that less than 5% (2) of this would be raised from holiday flights taken by people in households earning £11,500 a year or less. The average annual household income of someone flying on holiday is £47,000 (3) average household income in England is £27,000 a year (4).

The Aviation industry receives effective subsidies through tax breaks of £9billion per year (5) ,in contrast car drivers, pay tax on fuel and new vehicles. The Government admits that contrary to its `polluter pays' principle aviation doesn't pay for the environmental damage it causes. APD is the only immediate option available to the Government to start to make the industry pay its way.

The Commons Environmental Audit Committee heavily criticised the Government's as being "little interested in sustainability" in relation to Aviation (6). The Committees next pre-budget report on aviation is published this Monday, 15^th March.

Richard Dyer, Aviation Campaigner with Friends of the Earth commented:-

"APD is not perfect but an increase in next week's budget would send a strong signal that the Government is serious about starting to make this hugely polluting industry pay for the damage it causes. Furthermore, any claim that an increase would `price poor people of planes' is complete bunk, as Friends of the Earth has shown."

Notes

(1) 84million taxable passengers departed UK airports in 2002, £5 x 84m = £420million

(2) CAA 2002 passenger survey, figures for Gatwick, Heathrow, Manchester, Stansted and Luton, 4.4% of leisure flights are the poorest Households (on incomes of less that £11,500).

(3) CAA 2002 passenger survey

(4) Office of National Statistics 2002

(5) Applying tax to Aviation fuel at the same rate as motor fuel, VAT to airline tickets and removing duty free would raise over £9billion a year. `The Hidden Cost of Flying' Brendon Sewill, Feb 2003

(6) `Budget 2003 and Aviation' House of Commons Environment Audit Committee, July 2003

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Published by Friends of the Earth Trust