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Budget Resolutions and Economic Situation

As I pointed out, we are in a position of leverage because such a high proportion of airlines use the UK. We would be a big player in that argument. The Government will not say how much would be raised by an aviation tax, but in an answer in 2003 they stated that introducing duty at the ultra low sulphur diesel rate would raise £5.8 billion and at the heavy diesel duty rate, £6.6 billion, so in addition to the environmental effects the Exchequer could raise a lot of money by that means. A number of steps should be taken. First, we should threaten to leave the Chicago convention and use that as leverage to renegotiate it. It is ridiculous that there is a convention preventing taxation on international flights. We should press for renegotiation. Secondly, the Budget refers to the continental shelf oil companies and the taxation regime is directed at them, but all oil companies are making huge profits on all their activities. An excess profits tax could be imposed on them without the petrol price having to be raised. If we do nothing with regard to aviation, we should do more in respect of individual travellers, based on the price of a ticket so that the rich pay more. There should be more tax on cheap tickets as well. Finally, there are still great emissions and energy wastage from buildings—in London, for example, as much as from cars. The Government need to address that in their taxation regime. We need to tackle climate change and promote environmental protection. The Budget has made a start, but we need to do more.