There would be no need for new runways in Britain if aviation fuel was taxed at the same rate as motor vehicle fuel and air tickets were subject to VAT, according to new government figures.

Ministers are to consult the aviation industry this month on a range of taxes and other economic measures designed to reduce the industry's impact on the environment.

Environmental campaigners argue that the industry receives a hidden subsidy of more than £9 billion a year because of its exemption from fuel duty and VAT and its receipts from duty-free sales outside of Europe.