The Budget announcement has knock-on effects for the travel industry.

More tax on high CO2-emitting cars, an extra 10% on plane duty, and a postponement on a rise in fuel duty – environmental organisations have reacted to the 2008 Budget announcement by the UK Chancellor, Alistair Darling.

In his Budget announcement on 12 March, Mr Darling identified the travel and transport industry as being accountable for almost a third of UK carbon emissions. He announced an increase in plane duty, but also stressed that road vehicle emissions should also be addressed: “Britain’s 30 million cars, vans and lorries together account for 22% of total carbon emissions.”

The Budget’s main points included a deferred increase in fuel duty by half a pence per litre, and higher tax for cars that emit high levels of CO2, in an effort to “cut taxes for those who cut carbon emissions…it is right that if people choose to buy a more polluting car that they should pay more in the first year to reflect the environmental cost.”

Environmental concerns

Two of the UK’s largest environmental organisations – Friends of the Earth and Greenpeace – have welcomed the Chancellor’s efforts to address CO2 emissions, however both believe that more should have been addressed.

John Sauven, Greenpeace’s Executive Director, believes that the Chancellor has “dropped the ball” on climate change. He said: “Suspending the promised increase in fuel duty has fatally undermined his boast that this is a green budget, and tinkering with tax on planes and cars isn’t going to reduce emissions when he’s also promising new runways and roads.”

Friends of the Earth agreed with Greenpeace, stating that the announcement has “fallen a long way short of what is required”. The organisation’s director, Tony Juniper, commented: “He [Mr Darling] backtracked on fuel duty, and huge areas of the economy were not touched at all…Another freeze in fuel duty will further undermine the Government’s already weak green credentials. The cost of motoring has fallen over the past ten years, and carbon emissions from road transport have risen. Raising fuel duty would encourage people to choose greener transport options.”

The two organisations both believe that the Chancellor should have focused more on energy efficiency projects and sustainable transport options. For more information on the Budget, click here:  http://www.direct.gov.uk/en/Nl1/Newsroom/Budget2008/index.htm