Anthony Browne, Chief Political Correspondent
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The Tories proposed to increase aviation taxes yesterday as a weapon to cut greenhouse gas emissions — a policy that will be roundly condemned by Tony Blair and Gordon Brown today.
The Conservatives’ proposals were welcomed by environmental groups but suffered a barrage of criticism from airlines, tourist groups and some sections of the party itself.
Global warming has become the central political battle-ground, with the Government due to publish its climate change Bill tomorrow, which will set in law a target to reduce emissions of greenhouse gasses by 60 per cent by 2050. Mr Brown will make a speech today setting out his strategy for curbing emissions.
George Osborne, the Shadow Chancellor, announced a consultation on aviation taxes, proposing to abolish the current air passenger duty and replace it with a tax on flights aimed at dirtier engines, which airlines must pay, and introducing VAT on domestic flights.
To ensure that the policy would not hit people on low incomes hardest, everyone would be allowed one short-haul flight a year before the higher taxes kicked in. To overcome public resistance to tax rises, the money raised would be used to pay for tax cuts.
Mr Osborne said: “We’re saying that taxes on aviation need to increase. That’s because we think you need to take the tough long-term decisions to tackle climate change.”
But, he said, taxes had to be designed so that they did not “hit people who only have one package holiday a year” and that they targeted “more dirty engines on aeroplanes”.
However, there are signs of resistance within the Conservative Party, with some concerned that David Cameron is going too far to chase the green vote. Kenneth Clarke, the last Conservative Chancellor, who introduced the air passenger duty, expressed doubts. He said that any increase in green taxes would have to be huge to have in impact on behaviour.
“You have to go to an enormous level before you start reversing the growth in air travel,” he said, adding: “I think some of the growth in air travel is very good. . . I think it is a very important social revolution.”
Liam Fox, the Shadow Defence Secretary, raised doubts about the threat of climate change, saying: “I think there’s evidence on both sides. I think you have to look at the evidence as a whole.” But he said that he still supported policies to cut the use of fossil fuels to improve national security. “The fact that we are addicted to fossil fuels means that we’re pumping money into the economies of countries such as Iran, trying to build up nuclear weapons, and Russia, building up its military programme.”
Mr Blair is expected to say today that it would be unacceptable for British travellers and businesses to be penalised without any guarantee that the rest of Europe would follow suit. Mr Brown will emphasise the need for international action to combat climate change. “Changes must be considered, costed, credible and consumer friendly, not ill-conceived, short-termist, unworkable and unfair,” he will say.
However, Matthew Taylor, who until a few months ago was Tony Blair’s head of policy, enthused about the Tory plans, declaring: “It’s a fantastic policy. It’s the right policy in relation to tackling climate change and it’s a progressive policy because it says we all have the same rights to fly.
“It says a highly successful business person has no more right to fly than someone going on their annual holiday.”
Airlines lined up to attack the proposals, with Virgin insisting that the taxes would damage the economy, because they “would make airlines less competitive and shift jobs to other countries in Europe”.
British Airways said taxation “was an extremely blunt instrument in terms of reducing carbon emissions”.
Environment groups welcomed the proposals. Tony Juniper, director of Friends of the Earth, said: “Aviation is the fastest-growing contributor to climate change and it’s vital that we get to grips with it. We urge the Government to take into account emissions from aviation when it publishes the climate change Bill.”
Main points
—Existing air passenger duty abolished
—Airlines pay new tax aimed at dirtier engines
—Passengers pay VAT on domestic flights
—Each passenger allowed one short-haul flight per year without the higher tax
—The scheme’s revenue used to cut family tax
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