Tax private jets and domestic flights and use £2.4bn to reopen railways instead, says transport charity
Campaign for Better Transport is calling on the Chancellor Rachel Reeves to tax private jets and domestic flights in her forthcoming Budget (30 October) and use revenue raised to reinstate and quadruple the scrapped ‘Restoring Your Railway Fund’.
Michael Solomon Williams from Campaign for Better Transport said: “By taxing the most polluting form of transport the Chancellor could raise enough revenue to more than quadruple funding to expand rail capacity and connect millions more to the rail network. While the cut to Domestic Air Passenger Duty has driven up damaging domestic flights, Restoring Your Railway has enabled the reopening of lines such as The Dartmoor Line , which has exceeded projected passenger numbers, doubled its return in investment and given people back the vital rail networks so many across the country are crying out for.”
To send the right pricing signals and raise the money needed to reinstate the Restoring Your Railway fund, Campaign for Better Transport is calling on the Chancellor to:
- Reverse the cut in Air Passenger Duty for domestic flights
- Introduce a kerosene tax on non-lifeline domestic flights
- Introduce a ‘super’ rate of Air Passenger Duty for private jet passengers
- Apply Value Added Tax (VAT) to all private flights
In 2023, a new ‘domestic rate’ of APD was introduced at half the cost of the previous rate. Private jet passengers are currently only charged the same rate of Air Passenger Duty (APD) as business or first-class passengers, despite private jets being between five and 14 times more polluting than commercial flights and 50 times more polluting than trains. Reversing the cut to domestic APD and introducing an additional rate for private jet passengers would help to address the carbon costs of aviation and make rail travel more competitive with flying domestically.
The Chancellor scrapped the previous government’s ‘Restoring Your Railway Fund’ in July, as part of a series of cuts aimed at tackling projected Government overspend. The scheme was introduced in 2020 to re-open rail lines and stations closed by the 1960’s Beeching cuts. Approved projects are now subject to individual reviews by the Treasury.
With the UK responsible for almost a fifth (19 per cent) of Europe’s carbon emissions from private jets – more than any other European country – ending the tax break for private jet passengers would enable the Government to invest more money in expanding the rail network.
Mr Solomon Williams added: “Private jet passengers and people who choose to fly within mainland Britain rather than take the train should expect to pay a higher price for the pollution they cause. These measures alone could raise £2.4 billion a year for expanding rail capacity. We’re calling on the Chancellor to use the Budget to send the right pricing signals and invest in train not plane.”
ENDS
Read Campaign for Better Transport’s Budget submission to HM Treasury in full.
For further information please contact the press office on 07984 773 468 (calls only no texts) or communications@bettertransport.org.uk.
Notes to Editors
| Proposed measure | Annual revenue (£m) |
| Reverse the cut to Air Passenger Duty (APD) for domestic flights | £69 |
| Introduce a ‘super’ rate of APD for private jet passengers | £1,400 |
| Apply VAT to all private flights | ~£351 |
| Introduce a ‘kerosene tax’ on domestic aviation | £594 |
| Total | £2,414 (£2.4 billion) |
- On 1 April 2023, a new Air Passenger Duty (APD) band for domestic flights, priced at half the previous rate, was introduced, plus an extra long-haul band. The current APD rates are:
| Destination bands | Reduced rate* | Standard rate | Higher rate |
| Domestic | £7 | £14 | £78 |
| Band A (international
up to 2,000 miles) |
£13 | £26 | £78 |
| Band B (2,000 to 5,500 miles) | £88 | £194 | £581 |
| Band C (over 5,000 miles) | £92 | £202 | £607 |
*There are three rates of duty for each destination band depending on the class of travel: reduced rate for travel in the lowest class of travel available on the plane; standard rate for travel in any other class of travel; and a higher rate for travel in planes of 20 tonnes or more equipped to carry fewer than 19 passengers.
2.Only a small number of domestic private flights have Value Added Tax (VAT) applied, generally those using small helicopters or propeller aircraft. Larger private aircraft and international flights are VAT exempt.
3.According to data published by T&E, the UK is responsible for more carbon emissions from private jets than any other European country and, together with France, is responsible for almost 40 per cent of emissions.
4.Private jets are between five and 14 times more polluting than commercial planes (per passenger), and 50 times more polluting than trains, and they are twice as likely to be used for short trips (less than 300 miles), compared to flights in commercial aviation.
5.In January 2020, a £500 million Restoring Your Railway Fund was introduced by the Department for Transport. The scheme was scrapped on 29 July 2024.
6.Campaign for Better Transport operates in England and Wales. Campaign for Better Transport’s vision is for all communities to have access to high quality, sustainable transport that meets their needs, improves quality of life and protects the environment. Campaign for Better Transport Charitable Trust is a registered charity (1101929).
