16 September 2026
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Travel Politics

Govt Responds to Miliband’s ‘Ferry Tax’

A new levy, dubbed a ‘ferry tax’, being introduced in the UK this year will not affect the Steam Packet.

However, Ed Miliband’s new net zero tax may impact on the island’s lifeline services in the future.

The UK government is seeking to extend the Emissions Trading Scheme to include the maritime sector.

It said this “could help to overcome a key barrier to decarbonising the sector, which is that the prices of maritime fuels currently do not reflect their environmental costs”.

However, opponents of the plans say it will only hit passengers’ pockets.

Conservative shadow transport secretary Richard Holden told the Telegraph: ““It’s bad for passengers, bad for tourism – a terrible policy from a party that doesn’t care about the families and businesses that stand in the way of their ideological obsessions.”

Crown Dependencies

In an article in the Telegraph, the news site said it “will also affect firms offering trips to the Scilly Isles, Channel Islands and Isle of Man but not the Scottish islands, which have been exempted”.

However, a Manx government spokesperson told Manx.News: “The Isle of Man Government is aware of the development relating to domestic UK-to-UK voyages, which is due to come into effect in July 2026 and would not affect sailings to and from the Isle of Man.

“Separate proposals relating to international journeys are planned to come into force in 2028 and could affect sailings to and from the Isle of Man.

“Officers are engaging with colleagues from the UK’s Department for Energy Security and Net Zero as part of the consultation process.”

The UK government has also said that “voyages between the UK and Crown Dependencies or British Overseas Territories, as well as voyages between Crown Dependencies and British Overseas Territories, are not included as a domestic voyage”.

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