Airlines criticise Tory tax plans

Tory plans for radical new "green" taxes on air travel have been criticised by airlines.

The measures, unveiled by shadow chancellor George Osborne on Sunday, include fuel duty on domestic flights and scrapping air passenger duty in favour of a tax per flight, based on carbon emissions.

But airlines were quick to criticise the plans. Virgin Atlantic claimed "green" taxes on flights had already been proven not to work and that bringing in a "per flight" tax could harm the UK's economy.

Paul Charles, communications director for the airline, said: "Taxing passengers has failed as a means of reducing the growth in emissions.

"We would urge the Conservatives to consider encouraging the aviation industry to invest in the technology which will deliver lighter and cleaner planes and fossil-free fuels.

"Taxing passengers more would damage the UK economy as it would make UK airlines less competitive and shift jobs to other countries in Europe."

British Airways agreed that taxation was ineffective as a means of reducing carbon emissions.

A spokesman said: "As with the current air passenger duty, we believe taxation is an extremely blunt instrument in terms of reducing carbon emissions."

But budget airline easyJet was not so quick to condemn the Tory proposals and stressed the need for a tax reflecting the different pollution levels of aircraft.

They cautiously welcomed the idea of a "per flight" tax, claiming it would weed out those airlines using "dirty" aircraft.

The Conservatives said the measures - leaked to a number of newspapers - would replace existing taxes and would not increase the overall tax burden.

In the foreword to the consultation paper, entitled Greener Skies, Mr Osborne argues the existing system of aviation taxation in the UK is "fundamentally flawed".

He said: "I do not agree with those who argue that we need to stop flying altogether if we are to tackle climate change.

"However, I believe the case for acting now to reduce the future growth in greenhouse gas emissions from aviation is compelling.

"In particular, air passenger duty is not directly linked to carbon emissions and provides no incentives for airlines to use more fuel-efficient aircraft.

"I want to consult with the industry, with environmental groups, and with the public in order to create a sustainable regime of aviation taxation that has broad support."

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