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Tory group backs new flight tax Tory group backs new flight tax
(19 minutes later)
Tax rises for UK short-haul flights and for "gas-guzzling" cars are needed to combat climate change, a Conservative policy review group has said.Tax rises for UK short-haul flights and for "gas-guzzling" cars are needed to combat climate change, a Conservative policy review group has said.
The Quality of Life Group said it was "illogical" cars and trains were taxed more than flights, adding the UK should be a "world leader on green growth".The Quality of Life Group said it was "illogical" cars and trains were taxed more than flights, adding the UK should be a "world leader on green growth".
It wants to suspend airport expansion and increase investment in railways.It wants to suspend airport expansion and increase investment in railways.
Tory leader David Cameron responded to the report by saying "there is much of it...we will include in our manifesto".Tory leader David Cameron responded to the report by saying "there is much of it...we will include in our manifesto".
The recommendations come from a group headed by former Environment Secretary John Gummer and the environmentalist Zac Goldsmith, and form the last of a series of "policy reviews" by the Conservatives.The recommendations come from a group headed by former Environment Secretary John Gummer and the environmentalist Zac Goldsmith, and form the last of a series of "policy reviews" by the Conservatives.
ENVIRONMENTAL PROPOSALS No further airport expansions for nowRethink Heathrow's proposed runwayNo new runways at Gatwick or StanstedVAT on UK domestic flights and short-haul trips to EuropeUpgrade railway networkEncourage people to take trains, not flights, within the UK Variable "showroom tax" on new vehiclesRebates on stamp duty and council tax on "greener" homesNo stamp duty for "zero-carbon" homesCap on energy use by domestic appliances Source: Quality of Life Group report for the Conservatives At-a-glance: Group's report ENVIRONMENTAL PROPOSALS No further airport expansions for nowRethink Heathrow's proposed runwayNo new runways at Gatwick or StanstedVAT on UK domestic flights and short-haul trips to EuropeUpgrade railway networkEncourage people to take trains, not flights, within the UK Variable "showroom tax" on new vehiclesRebates on stamp duty and council tax on "greener" homesNo stamp duty for "zero-carbon" homesCap on energy use by domestic appliances Source: Quality of Life Group report for the Conservatives At-a-glance: Group's report class="" href="/1/hi/uk_politics/6992633.stm">Analysis: Difficult choices
The recommendations are not binding on Mr Cameron, who said any extra money raised from new green taxes would be used to cut taxes on families.The recommendations are not binding on Mr Cameron, who said any extra money raised from new green taxes would be used to cut taxes on families.
Mr Gummer said the group was keen to be "giving to the next generation something better than we've received ourselves".Mr Gummer said the group was keen to be "giving to the next generation something better than we've received ourselves".
And at the launch of the report, he said he hoped "the green revolution could do for Britain at this time what the industrial revolution did a couple of hundred years ago".And at the launch of the report, he said he hoped "the green revolution could do for Britain at this time what the industrial revolution did a couple of hundred years ago".
The group calls for VAT to be introduced on domestic flights to end the "unfair and illogical bias that taxes cars and trains more than flights".The group calls for VAT to be introduced on domestic flights to end the "unfair and illogical bias that taxes cars and trains more than flights".
Under its plans, £29 would be added to a return flight from London to Manchester, for example.Under its plans, £29 would be added to a return flight from London to Manchester, for example.
"There are 30 or more flights a day from London to Manchester and other cities like that. That's a terribly bad [way] of pouring emissions into the atmosphere. What we need is a better train service," Mr Gummer told the BBC."There are 30 or more flights a day from London to Manchester and other cities like that. That's a terribly bad [way] of pouring emissions into the atmosphere. What we need is a better train service," Mr Gummer told the BBC.
'Families penalised''Families penalised'
The group also suggests putting airport expansion on hold and a reconsideration of plans for a third runway at Heathrow.The group also suggests putting airport expansion on hold and a reconsideration of plans for a third runway at Heathrow.
"We think there is no need for a new runway at Stansted or at Gatwick," Mr Gummer explained."We think there is no need for a new runway at Stansted or at Gatwick," Mr Gummer explained.
If you want to pollute you pay more, and if you are prepared to do something about the environment, you pay less John GummerFormer environment secretary 'Too few green incentives'If you want to pollute you pay more, and if you are prepared to do something about the environment, you pay less John GummerFormer environment secretary 'Too few green incentives'
"We want to have a moratorium on the discussions as far as Heathrow is concerned while we look at whether it's true - which is what the airport says - that if you did some change there, you could actually reduce emissions.""We want to have a moratorium on the discussions as far as Heathrow is concerned while we look at whether it's true - which is what the airport says - that if you did some change there, you could actually reduce emissions."
However, the chief executive of budget airline EasyJet, Andrew Harrison, said domestic air travel was "already very highly taxed".However, the chief executive of budget airline EasyJet, Andrew Harrison, said domestic air travel was "already very highly taxed".
"If you widen the debate out to the regions - to Northern Ireland, to Scotland, to the north-east - rail is simply a slow, expensive, and often non-existent alternative.""If you widen the debate out to the regions - to Northern Ireland, to Scotland, to the north-east - rail is simply a slow, expensive, and often non-existent alternative."
Former Labour energy minister Brian Wilson, who chairs travel industry organisation Flying Matters, said such taxes would penalise "families who save and work hard to fly once a year".Former Labour energy minister Brian Wilson, who chairs travel industry organisation Flying Matters, said such taxes would penalise "families who save and work hard to fly once a year".
HAVE YOUR SAY My quality of life will improve when my partner and I are no longer taxed until it's painful A King, Newbury class="" href="http://newsforums.bbc.co.uk/nol/thread.jspa?threadID=7361&edition=1&ttl=20070913093340">Send us your comments "Those who are well-off - the David Beckhams of this world, the businessmen - will continue to fly," he added. "Those who are well-off - the David Beckhams of this world, the businessmen - will continue to fly," he added.
Green Party co-principal speaker Sian Berry described the proposals as "fiddling around the edges when what is needed is urgent and radical action". 'Showroom tax'
She accused the Conservatives of wanting to reduce the number of domestic flights to "release airport slots for international flights", and said eco-taxes would "hit the poor in our society hardest". Green Party co-principal speaker Sian Berry described the proposals as "fiddling around the edges when what is needed is urgent and radical action" and said eco-taxes would "hit the poor in our society hardest".
Financial 'hole'
Other proposals from the group include a "showroom tax", where larger, less fuel-efficient cars would pay more, and cleaner, small cars would receive VAT relief.Other proposals from the group include a "showroom tax", where larger, less fuel-efficient cars would pay more, and cleaner, small cars would receive VAT relief.
The report also recommends reducing stamp duty and council tax on energy-efficient homes and lowering business rates for greener offices.The report also recommends reducing stamp duty and council tax on energy-efficient homes and lowering business rates for greener offices.
"People are increasingly concerned that the government knows about climate change and is doing nothing about it," Mr Gummer added."People are increasingly concerned that the government knows about climate change and is doing nothing about it," Mr Gummer added.
HAVE YOUR SAY My quality of life will improve when my partner and I are no longer taxed until it's painful A King, Newbury Send us your comments
He said the report took the approach that "if you want to pollute you pay more, and if you are prepared to do something about the environment, you pay less".He said the report took the approach that "if you want to pollute you pay more, and if you are prepared to do something about the environment, you pay less".
Chief Secretary to the Treasury Andy Burnham said the Conservatives had been claiming that green taxes would fund their policies, but added: "By our reckoning there is a rather large hole in their financial plans." Lib Dem environment spokesman Chris Huhne said the proposals were at odds with another policy review on economic competitiveness.
He went on: "The Tories' problem is that they are proposing unfunded tax cuts, billions of pounds of extra spending promises and cuts to borrowing, all at the same time." He said: "John Redwood wants more roads, runways and growth, while John Gummer proclaims a 'significant moratorium' on roads and airport expansion.
"Even David Cameron's circus skills will be tested by trying to ride these two horses in opposite directions."
Chief Secretary to the Treasury Andy Burnham said: "The Tories' problem is that they are proposing unfunded tax cuts, billions of pounds of extra spending promises and cuts to borrowing, all at the same time."