Private jet tax could pay for off-peak rail fares, says Oxfam Scotland

A devolved tax on the use of private jets could have paid for ScotRail to keep off-peak fares until the end of the financial year, a report by by Oxfam Scotland has suggested.

About 6% of private jet flights in the UK took off from Scotland, with 12,911 recorded in 2023, of which 26% were from Edinburgh Airport, according to the charity.

The Scottish Government has devolved powers to implement an Air Departure Tax (ADT) which Oxfam Scotland modelling suggested could have raised up to £21.5 million in tax.

The charity said that was likely to be enough to extend ScotRail’s off-peak fares pilot until the end of the financial year.

Since 2019, when the Scottish Government declared a climate emergency, there have been 54,746 recorded private flights, estimated to be 50 times more polluting than trains, according to an Oxfam Scotland report.

Oxfam Scotland said the Scottish Government should “swiftly implement” a tax on private jets in Scotland, regardless of Westminster, amid data suggesting UK taxes on jets and superyachts could have raised up to £2 billion last year.

The charity said ADT legislation enables the Government to implement a tax on private jets, either through adapting the existing “special” category rate or by creating a specific new rate for private jets, set at least 10 times higher than the existing higher rate under the UK-wide Air Passenger Duty (APD).

It called for an end to “bureaucratic complications and political wranglings” between the Governments, over the continuation of an exemption for passengers flying from Highlands and islands communities.

Oxfam Scotland said the two Governments “must urgently get around the table to extend the existing exemptions and subsidies that apply within APD for people travelling from remote communities to the new devolved ADT”, unless they are using private jets.

Jamie Livingstone, head of Oxfam Scotland, said: “Private jets are an egregious form of climate vandalism, fuelling irreversible damage.

“While the ultra-wealthy live in planet-destroying excess, people in poverty are paying the price. Fairer taxes on the most polluting forms of travel would not only raise more money to invest in climate action, but could also help ground demand for these high-polluting luxuries.

“The Scottish and UK Governments must stop stalling and urgently unlock the irresponsible impasse to ensure that those who pollute the most – and who can afford it the most – pay to clean up the climate cost of their lavish lifestyles.”

In April, Wellbeing Economy, Net Zero and Energy Secretary Mairi McAllan promised the Scottish Government would “soon” lay out the high-level principles of ADT, including how it will support emissions reductions.

Five months later, campaigners urged for action to implement ADT, including a specific tax on private jets – which Oxfam Scotland said should be seen as the “first step” in a broader strategy to drive down aviation emissions and demand.

Proposals include imposing a levy for people who fly multiple times a year, and restricting short flights when alternatives exist, amid warnings that emissions are only expected to grow in the short term.

The Scottish Government’s own advisers, the Climate Change Committee, called for a demand management framework to track the sector’s emissions, as part of work to achieve net zero by 2045.

Mr Livingstone added: “Urgent action is needed to tackle the climate crisis and deal with its devastating impacts, both in the UK and around the world. There’s enough money to go around but it requires making fairer, smarter choices.

“The UK and Scottish Governments have the responsibility to use the powers they each hold to take the bold action needed to tackle climate inequality and create a fairer, more sustainable future for everyone.”

A Scottish Government spokesperson said: “Ministers recognise Air Departure Tax could and should make a contribution to reducing emissions from the aviation sector.

“The Scottish Government continues to explore all options for implementing Air Departure Tax. This must be done in a way that protects the connectivity of the Highlands and islands and the lifeline services those communities rely on.

“We will review the rates and bands of Air Departure Tax to ensure they are aligned with our net-zero ambitions once a solution to the Highland and islands exemption has been identified.”