Brown Budget Finances Destruction of Homes And Poisoning Of Air

West London Friends of the Earth has branded the budget as a charter for environmental destruction.

Gordon Brown budget

Nic Ferriday, aviation campaigner, said "Aviation is one of the most under-taxed sectors in the economy as well as being the most environmentally damaging. Its tax exemptions of £9 billion pa mean that demand is artificially stimulated and more money can be pumped into expanding Heathrow. [Note 1] We all know what expansion means - houses knocked down for a third runway and more deaths from air pollution."

"The Chancellor's decision to hold the present rate of APD is a cut in real terms when what we need is an increase. Furthermore, he stated in the budget that he wants to increase the VAT exemption on goods bought in from outside the EU to £1000. [Note2] This means that a traveller could save up to £175 by buying foreign goods instead of British. It could be worthwhile flying abroad just as a tax dodge."

Note 1. The only tax on aviation is Airport Passenger Duty (APD), which brings in about £900m a year. This contrasts with the tax levels of £ 9 billion pa that environmentalists and some economists are calling for - a tax on aviation fuel equal to that on cars or other taxes of equivalent value. See tax exemptions page.

Note 2. The Chancellor said in his speech "Last year I proposed the European union raise the duty free allowance for bringing goods into the country from outside the EU. This year the European commission have proposed to increase it from £145 to £340. But I am submitting proposals today for a further increase to £1,000."

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Mar 06