Non-doms get frequent flyer bonus

The 2008 Budget will be remembered not for a bang, but for a whimper. But behind the tinkering and the lack of clear vision had lain a glimer of hope for the planet. Darling was to have closed a loophole which actively encourage frequent flying by the much-hated and tax-evading non-doms. At the last minute he faltered, and left it in.

Residents of Monaco and other tax dodge hangouts are able to claim non-dom status if they spent no more than 90 days in the UK each year - but can discount "travel days" from the total. The uber-rich jet in on Monday, fly off on Wednesday and claim they've only worked one day in the UK. Unsuprisingly it's often cheaper to grab an unnecessary short-haul (or more often, private) flight to nowhere in particular than break the 90 day rule and have to shell out some tax for a change.

Faced with City fat cats complaining abut having to pay a little tax, Darling began cutting deals left and right. His headline grabbing but fiscally insignificant £30k non-dom tax had to stay, or he'd have looked weak on his Budgetary debut. Of course there was a pay-off: in order to keep it, he scrapped almost everything else, including plans to close the loophole.

Darling's proposals were never intended to be green - rather, a sensible crackdown on the uber-rich taking the piss - but keeping the loophole in place is a radically anti-environmental measure. "Travel days" actively encourage wanton flying, paying non-doms to dream up afternoons shoe shopping in Milan to avoid having the morning's work in the City counting against their quota.