Campaigners estimate that taxing superyachts and private jets could raise £2 billion annually
Oxfam says ‘commonsense solution’ would reduce emissions and raise urgently needed climate finance
Fair taxes on superyachts and private jets in the UK could have brought in £2bn last year to provide vital funds for communities suffering the worst effects of climate breakdown, campaigners say.
Private jet use in the UK is soaring. It was home to the second highest number of private flights in Europe last year, behind only France, according to figures from the European Business Aviation Association.
The UK is also home to a 450-strong fleet of superyachts, which contribute to an immense carbon footprint created by the ultra-wealthy far beyond that of the average citizen.
Analysis by Oxfam and US researchers of the luxury purchases and financial investments of 12 billionaires revealed recently that they account for almost 17m tons of CO2 and equivalent greenhouse gas emissions annually.
This is equivalent to the emissions from powering 2.1m homes or from 4.6 coal-fired power plants over a year, according to conversion data from the US Environmental Protection Agency.
Oxfam is calling on the chancellor, Rachel Reeves, to increase taxes on extreme wealth starting with a levy on private jets and superyachts. The charity said this could provide a fairer system to raise money to tackle the climate crisis and avoid the burden falling on lower-income families.
Natalie Shortall, a climate justice policy adviser for Oxfam UK, said: “While the super-rich continue to pollute at excessive rates, it is people living in poverty – in the UK and around the world – who have done the least to cause the climate crisis, who are suffering the most from its devastating impacts.
“Further steps to better tax extreme wealth are needed to accelerate climate action and fight inequality – increasing taxes on highly polluting luxuries such as private jets and superyachts is an obvious place for the government to start. These are the kind of commonsense solutions that are urgently needed to quickly and fairly reduce emissions and raise crucial climate finance – by making the biggest and richest polluters pay.”
Private planes are up to 14 times more polluting, for each passenger, than commercial planes and 50 times more polluting than trains, according to a report by Transport & Environment, a European clean transport campaign organisation.
Oxfam’s research suggests up to £830m could have been raised last year by introducing a higher rate of air passenger duty for private jets and introducing a superyacht ownership tax.
The research also highlighted up to a further £1.2bn of additional revenue possible from taxing private jet fuel, charging VAT on private aviation, as well as taxing private jet landing and departure slots.
A study last year by Green Alliance showed private jets release 10 times more carbon for each passenger on average than commercial flights, but often incur less tax than a car driver making the same journey.
The Guardian revealed last year that the richest 1% of the world’s population is responsible for more carbon emissions than the poorest 66%, with dire consequences for vulnerable communities and global efforts to tackle the climate emergency.
A Treasury spokesperson said: “We do not recognise these calculations. The Chancellor has been clear that difficult decisions lie ahead on spending, welfare and tax to fix the foundations of our economy and address the £22 billion hole the government has inherited. Decisions on how to do that will be taken at the Budget in the round.”
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