How green is my tax?

From 1st November, Air Passenger Duty is being increased. The rise, in two stages, hits long-haul flights hardest. In a year’s time, a family of four flying the furthest distance in economy will pay an extra £340, while a trip to the United States will cost another £240. APD will then be four times the level it was just three years ago.

The government has billed this as a “green” measure whose aim is to reduce aviation emissions. The airlines, the tourist industry and others claimed it is a stealth tax which could lead to a loss of jobs and tourism and, as it’s been extended to flights, trade too.

The Government stuck to its guns, maintaining the importance of this “green” measure. In his 2007 Budget, Gordon Brown said:

“Air Passenger Duty plays a valuable role in ensuring that passengers understand and acknowledge the environmental costs of their actions. The resultant behaviour change can deliver significant climate change benefits.” – Gordon Brown, Chancellor, 2007

Now it turns out that’s utter hogwash. Lord Myners admitted in the House of Lords a couple of weeks ago that APD is “primarily a fiscal strategy”. That surprisingly honest admission wasn’t widely reported at the time but it turns out he was speaking the truth. The Chancellor, Alistair Darling, addressed a group of journalists in Newcastle yesterday. Possibly embolden by a glass or two of Newcastle Brown Ale, he said:

“I am quite blunt about it, we need to raise money to pay for some of the things we have done…What we are doing is putting a pound on to your average ticket, which about three quarters of people travel on. And when you consider the cost of an air ticket, I don’t think a pound is that unreasonable.” – Alistair Darling, Chancellor, 2009

It’s one thing to introduce taxes to try to plug the gaping hole in public finances but quite another to pretend that it’s all being done in the interest of climate change.