SerpApi.Org
Andy Burnham’s new net zero minister has previously pushed for green taxes on plane tickets to drive down air travel.
Miatta Fahnbulleh advocated frequent-flyer levies that would add hundreds of pounds to the annual costs of regular travellers.
Now the Energy Secretary, she called for the taxes while chief executive of the New Economics Foundation think tank between 2017 and 2023.
During her time there, the think tank proposed in 2021 adding an escalating levy to tickets which would increase for every subsequent flight taken within a year, replacing the current Air Passenger Duty system.
Her appointment on Monday is likely to raise concerns that some of her previous policy proposals may be taken forward.
The think tank’s work has been incorporated into Labour policymaking in the past, including work on green industrial strategy and energy.
Richard Holden MP, the shadow transport secretary, said families were already paying some of the highest flight taxes in the world “just to get away for a well-earned break”. “But Andy Burnham’s pick as Labour’s Energy Secretary wants to pile another tax on top,” he said.
He added British families were already being “taxed through the roof” and claimed the new taxes on air travel represented a punishment for “anyone who dares to fly for a holiday”.
Under the frequent-flyer tax proposal, the first flight taken by any individual in a given year would be exempt. The proposal was designed in part to keep costs neutral for lower-earners, who typically travel less, and to also protect family holidays. However, costs would then ratchet up in increments.
Under one model, for example, the tax on the first flight would be £0, the second flight £25, and each additional increment would increase by £10 thereafter (£35, £45, £55) for each subsequent flight. By the 10th flight the total green tax bill would come to £585.
The costs would be even higher for those travelling for business, representing a significant cost to companies.
It would be felt most by higher earners, who fly more, with models suggesting the highest 20pc of earners would cut flying by around 30pc, while the lowest 20pc would be unaffected.
Government sources were keen to stress the proposal is not official policy, but frequent-flyer levies are a current recommendation of the Climate Change Committee – the Government’s official climate adviser.
It would come on top of initiatives which have already pushed up the cost of air travel, including the so-called Sustainable Aviation Fuel mandate, which requires airlines to use at least 22pc of green fuel in their tanks by 2020.
Ms Fahnbulleh’s old think tank, which she left before 2024, now proposes more radical approaches to discourage flying and raise revenue. This includes increasing the prices of premium, business and first-class tickets by as much as £500 or implementing a “luxury class surcharge” based on a percentage of the ticket price.
The think tank also suggests charging more for long-haul flights which result in a greater level of emissions.
Instead of charging the frequent flyer levy on tickets, the think tank also now advocates levying tax directly on the annual self-assessment returns of “ultra-frequent flyers” – those taking six or more flights per year – to “encourage sustainable choices from extreme emitters”.
The Government has distanced itself from the proposals, saying “this is not government policy”. A spokesman added: “We’ve cut VAT on electricity to give families breathing space. The Energy Secretary’s focus is working to bring bills down for good.”
