Use the Budget to reform aviation tax

17 October 2026

Ben Plowden, Chief Executive of Campaign for Better Transport, said: “At a time when public finances are under considerable pressure, it makes little sense that aviation continues to enjoy tax breaks unavailable to almost every other form of transport. This is increasingly difficult to justify when the Government is looking for ways to fund public services and invest in a cleaner, more sustainable transport system.

“The Budget is an opportunity to begin correcting this imbalance. Introducing a kerosene tax, a frequent flyer levy and a higher rate of Air Passenger Duty for private jets would ensure that those who fly the most contribute more towards the environmental and social costs of aviation. The revenue raised could be invested in the local transport networks people use every day, helping people access jobs, education and healthcare while supporting the Government’s goals on economic growth, decarbonisation and reducing inequality.”

Flying remains the most carbon-intensive form of travel, yet unlike motorists, airlines do not pay duty on the fuel they use. This means aviation fuel is effectively tax-free.

Also, in the UK, 15 per cent of people take 70 per cent of all flights, while almost half the population does not fly at all. A frequent flyer levy would apply to people taking multiple flights each year—not those simply taking an annual holiday—and ensure these ‘frequent flyers’ contribute more towards the environmental costs of aviation.

Private jet passengers would also be affected by proposed reforms. Private jet travel is estimated to be 20 to 30 times more carbon-intensive per passenger than economy-class commercial flights and can cost upwards of £10,000 per flight hour. Despite the significantly higher emissions and greater cost of private jet travel, private jet passengers on flights under 2,000 miles currently pay the same rate of Air Passenger Duty as someone travelling on a standard commercial flight.

Campaign for Better Transport believes the current tax regime gives aviation a significant advantage over lower-carbon transport options and undermines the Government’s environmental objectives. Reforming aviation tax would raise much needed public funds and help rebalance financial incentives towards cleaner forms of travel, whilst ensuring that all transport modes contribute fairly towards meeting the country’s environmental and fiscal objectives.

ENDS

For further information please contact the press office on 07984 773 468 (calls only no texts) or communications@bettertransport.org.uk.

Notes to Editors

1. Read Campaign for Better Transport’s full Budget submission.
2. Countries which already tax domestic aviation kerosene include Argentina, Australia, Armenia, Azerbaijan, Bolivia, Brazil, Canada, Chad, Chile, Colombia, Costa Rica, DRC, Dominica, Ecuador, Ethiopia, Guatemala, Hong Kong, India, Indonesia, Japan, Jordan, Kenya, Laos, Mexico, Myanmar, Nepal, Norway, Paraguay, Peru, Philippines, Rwanda, Saudi Arabia, South Africa, Sri Lanka, Switzerland, Taiwan, Tanzania, Thailand, Uganda, US, Venezuela and Vietnam.
3. A Frequent Flyer Levy would be an incremental tax targeted at the small percentage of people who take multiple flights a year. One return flight, per passenger, per year would be exempt, meaning people taking an annual family holiday wouldn’t pay anything extra. The levy would apply to any additional flights and increase with each further flight taken during the same 12 months.
4. Average private jet flights costs.
5. 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, reduces inequality, and supports a vibrant, productive and decarbonised economy. Campaign for Better Transport Charitable Trust is a registered charity (1101929).