NEW climate tax may lead to 8% of holidaymakers stop flying. Culture Secretary claims this will put economy and finances back into shape.
A NEW green tax will bump up air fares by up to 7% – adding around £150 to a family holiday to Orlando.
Tory transport minister Theresa Villiers has admitted the new EU environmental rules, which come into force from January, will see the cost of flying soar. The aviation greenhouse gas emissions trading scheme, which forces airlines to pay for the emissions their planes produce, will increase average UK air fares by “approximately 6% to 7% in the period between 2012 and 2020”, Ms Villiers said. The green tax could add £35 to the cost of a flight to New York and £65 for an economy ticket to Sydney.
It comes on top of the Air Passenger Duty, which Chancellor George Osborne is likely to put up by 10% in the Budget after a freeze this year.
A report by the World Travel Market Industry yesterday revealed 8% of holidaymakers could stop flying and a further 37% could reduce the number of holidays they take each year because of the tax burden.
Tory MP Daniel Poulter claimed there will be a review of air taxes later this year, saying: “Families are being forced to pay more to visit relatives overseas.”
However, Culture Secretary Jeremy Hunt ruled out making it cheaper to fly, insisting: “We are trying to put the UK’s economy and finances back into shape.”