Ferry fares may rise under new carbon tax rules

Emily HudsonSouth of England political editor
News imageWightlink A drone view of a Wightlink car ferry with mud flats and the masts of a yacht marina seen in the backgroundWightlink
Ferry operators serving the Isle of Wight say there is no capacity to operate fully electric fleets

People who use cross-Solent ferries are being told tickets could go up because of a government scheme to cut pollution.

The Emissions Trading Scheme is to be rolled out to the maritime sector from July 2026 meaning operators pay a "carbon tax" if they are using fossil fuels.

But ferry operators serving the Isle of Wight say there is no grid capacity at Portsmouth, Freshwater, Yarmouth, Southampton or East Cowes for them to operate a fully electric fleet.

The government said: "Pricing emissions is a cost-effective way to cut carbon emissions and encourage greener travel."

The Isle of Wight West MP Richard Quigley said although this would only add £1-2 to a ticket, the idea of Island ferry operators paying this levy was due to "many years of a lack of understanding how the Island operates and how it's unique and isolated".

Last week 37 organisations and businesses wrote to the Secretary of State warning it could lead to increased prices for islanders as well as disincentivising leisure travel.

Labour's Richard Quigley and his Conservative counterpart, Joe Robertson, are calling on the government to match the exemption or discount offered to other Islands.

The Scottish Islands have an exemption from the levy until 2030 and Northern Ireland is getting a 50% levy reduction.

The Isle of Wight East MP added: "Global warming will not be solved by making it more expensive to travel to the Isle of Wight or any other island within the United Kingdom. I urge the Government to think again and extend its exemption to all UK islands."

'Slap in the face'

David Groocock, a Ventnor hotelier posted in the Solent Transport Users Group (STUG) on social media, he said: "The Government set up a committee to look into the ferry operators, then put a surcharge of 15% from July.

"A total slap in the face to the Island."

A meeting is due to be held next week between MPs, Wightlink, Red Funnel and the UK Chamber of Shipping about the issue and the Maritime Minister has been invited to the Isle of Wight for a discussion.

The Department for Energy, Security and Net Zero has been contacted.

A government spokesperson said: "Pricing emissions is a cost-effective way to cut carbon emissions and encourage greener travel.

"We are working closely with industry on implementation and consumers shouldn't see significant costs.

"This is alongside our work with Ofgem and network companies to reform the outdated grid connections process and speed up delivery of new infrastructure."