UK's Tax-Free Aviation Fuel Makes Flying Cheaper Than Trains
Tax-Free Aviation Fuel Makes Flying Cheaper Than Trains

The director of a leading environmental charity has called for an end to the tax break that makes flying frequently cheaper than train travel in the UK.

The Surprising Tax Loophole

Anna Hughes, director of Flight Free UK, states that while cheap flight deals are commonplace, many people are shocked to learn the reason behind the price disparity. There is currently no tax on aviation fuel in the UK, a policy that gives airlines a significant financial advantage over rail operators.

Hughes, who speaks to vast numbers of people about air travel through her charity work, confirms that the absence of this tax consistently surprises the public. This comes at a time when the government is considering new taxes on electric vehicles, creating a stark contrast in policy approaches.

Environmental Impact vs Transport Costs

The situation creates what Hughes describes as a "ludicrous" scenario where the most environmentally damaging form of transport enjoys favourable tax treatment. This tax exemption helps airlines maintain artificially low fares, making air travel the budget option even for domestic routes within Britain.

Numerous accounts have emerged of passengers flying between UK cities via European destinations like Mallorca because the total airfare proved cheaper than a direct train ticket. This perverse outcome highlights how the current tax system distorts transport choices.

A Call for Policy Change

While acknowledging that taxing airline fuel isn't the complete solution to promoting low-carbon travel, Hughes argues it represents a crucial starting point. She suggests the government should look to the skies for "easy wins" in revenue generation rather than targeting emerging green technologies.

The call for reform comes amidst growing concern about the climate crisis and the need to align transport policy with environmental objectives. Ending the aviation fuel tax exemption could help level the playing field between high-carbon and low-carbon travel options.