Air tax to raise cash for development
Britain and France have today agreed to raise money for international development through an air ticket tax.
Chancellor Gordon Brown announced in June that part of the existing passengers tax would go towards development, but today France announced it was introducing a new tax for the same purpose.
France has a much smaller aid budget than the UK and this levy, the announcement of which comes as EU finance ministers meet for summit talks in Manchester, is a way for them to raise money.
A working group is being set up to consider the detailed implementation of such a scheme – which Treasury officials insist will not see any change in the UK’s passenger tax – and will deliver its decisions by the beginning of next year.
Both countries will now be pressing for other nations to join them in this financing arrangement at the United Nations summit next week.
