Tax On Flights Could Fund Rail Projects

7 August 2007 - 7:00am

Politicians in England are proposing a tax on flights and freight haulers to help fund rail initiatives.

The Liberal Democrats have suggested a £10 tax per ticket on domestic flights in Britain to add funding for rail improvements.

"They are also proposing to put a toll on road freight, while encouraging private investment in railways."

"The party says it would generate £12bn in five years and be a temporary measure, without specifying how long."

"The proposals are part of a package aimed at making Britain's transport system carbon neutral by 2050."

"The flight charge would generate £150m a year, and the freight toll could raise £600m annually to be put in a 'Future Transport Fund'."

"Lib Dem environment spokesman Chris Huhne said the flight tax would curb the growth in the internal flights and shift freight from road to rail, potentially cutting the UK's carbon emissions by more than 2.6 million tonnes a year."

Source: BBC, August 2, 2007
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At a much larger economic scale, however, one mustn’t avoid calculating the tremendous and exceptional externalities of automobile dependency.