Greens reveal London’s hidden tax burden – £1.7 billion annual subsidy to aviation

Heathrow Airport alone costs the general public £857million in hidden costs with estimated £489 million costs that contribute to climate change. Proposed Green Party legislation for an Air Traffic Reduction Bill would bring about the first steps to introducing a level playing field.

Cllr. Darren Johnson, Leader of the Greens on the London Assembly, and the Green Party’s Mayoral Candidate for the forthcoming election said ““People are always being told airports make them better off. But as this report shows, society is actually giving massive hidden subsidies and tax breaks to the aviation industry.”

“Since we first proposed an air traffic congestion charge, we’ve seen the idea gain momentum. The Institute of Public Policy Research and parliament’s own Environmental Audit Committee have both said we need to start levying serious taxes on aviation. Subsidised air travel is causing immense harm to our environment. Aviation is the fastest-growing source of greenhouse gases and climate change could devastate our economy in coming decades if we don’t do the right thing now.”

“People who don’t fly are subsidising people who do, and people who fly occasionally are subsidising people who fly a lot. And generally speaking it’s poorer people subsidising wealthier people.”

Emissions taxes that could increase air travel costs by 20-30% should be levied on airports, says the new report from the Green Party. Revenues received from Heathrow alone would generate over £171 million a year.
Cllr. Darren Johnson did some research of his own. “We are in a ludicrous situation whereby it is cheaper to fly than travel by train. I picked a random date and investigated how I could get to Edinburgh and Barcelona by train and plane. Air travel to Edinburgh was £44 return and train travel varied from £64 for a super advance to £181 for a standard open ticket. Barcelona was even more staggering. Air travel was a mere £24 return and train travel varied between £59 and £119 for travel from London to Paris and £220 from Paris to Barcelona and that was just one way.
Darren Johnson continued “We have to put airfares up to reflect the true environmental and economic costs and we need to start slashing rail fairs. New emissions taxes could start this process.”

Jean Lambert Green MEP for London “We still need international agreement to tax aviation fuel, but we can’t wait for it. We need to take action at the national level now. The Green Party’s proposed taxes would very neatly circumvent the international ban on aviation fuel tax.”

Green Peer, Tim Beaumont of Whitley, who plans to introduce an Air Traffic Reduction Bill through the House of Lords in the new year, said “These sort of financial measures are just what’s needed to level the playing field and start reducing demand for air transport, which is essential if we’re to tackle climate change.”
The Green Party’s new report says that:

– Last year the UK aviation industry benefited from some £9.2 billion in tax breaks.
– In the same year, the industry’s “external” or hidden costs amounted to £3.767 billion, including £2.128 billion for its share of the economic damage caused by climate change.
– The tax breaks and other hidden subsidies are equivalent to every man, woman and child in the UK donating £220 to the aviation industry.

Estimated external costs and tax breaks at the top thirteen UK airports, and the revenue to be raised from a charge levied at 20% of the airport’s estimated external costs:

Airport Estimated hidden costs,
£ million Estimated contribution to climate change costs,
£ million Estimated share of UK aviation’s annual tax break,
£ million Proposed annual emissions/ congestion charge,
£ million
Heathrow 857 489 1,260 171.4
Gatwick 435 248 1,062 87
Manchester 331 189 807 66
Stansted 284 162 692 57
Birmingham 209 119 510 41.8
Edinburgh 195 111 476 39
Glasgow 163 93 397 32.5
Luton 102 58 250 20
East Midlands 90 51 219 18
Bristol 85 49 208 17
Newcastle 82 47 200 16.4
Liverpool 61 35 149 12.2
Leeds- Bradford 53 30 130 10.6

Notes to editors:

Copies of the report, Emissions Charging at Major UK Airports are available by email from media@greenparty.org.uk .
1. Population figures for London taken from 2001 census.

Further information, interviews:

ENDS

NOTES FOR EDITORS:

1. Darren Johnson is 37 and was selected as the Green Party’s candidate for Mayor of London in May 2003. He was elected to the London Assembly in May 2000 where he is Leader of the Green Party Group. He was also elected to Lewisham Council in May 2002.

2. The Mayoral election will be held on June 10th next year at the same time as the elections for the London Assembly and European Parliament. At the last Assembly elections the Greens scored one of their best ever results in the Party’s history, securing 11.1% of the vote across London and winning three seats on the 25-member Assembly.

For further information and to arrange interviews with Darren Johnson contact: Penny Kemp on 01622 890601 or Keith Magnum on 07739 968 825

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