I mean that the release price of the M2 MBA including VAT (£1249) is that much higher than the release price of the M1 MBA including VAT (£999 - the same price

I mean that the release price of the M2 MBA including VAT (£1249) is that much higher than the release price of the M1 MBA including VAT (£999 - the same price as it is today on the apple store although in practice you can find them new from £850-ish).