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11 April 2011 13:38
Air passengers have been spared increased flight costs with the delay in APD hike
Chancellor George Osborne has put off plans for the inflation-linked increase in Air Passenger Duty (APD) airport departure tax until April 2012, offering much-needed relief to
travel insurance holders.
Holidaymakers have been facing a steady increase in APD since its introduction in 1994. The increase in November last year pushed up the rate for air passengers on the longest flights by up to £170.
However, some business and luxury travellers may be affected as Mr Osborne announced tax would be imposed on private jets.
He said a proposal to replace APD with a per-plane levy is also being deferred as all options currently being considered would violate international law.
A consultation will also be launched on reforming APD to correct existing problems with the system.
Highlighted some of the issues, Mr Osborne told MPs that APD assumed that the Caribbean was further away from the UK than California.
Mike Carrivick, chief executive of the Board of Airline Representatives in the UK, which represents 86 airlines, said: "The Chancellor's decision on APD is a welcome development but does not go far enough.
"The UK travel industry already pays the highest aviation taxes in Europe and the existing APD levels do not take into account the EU Emissions Trading Scheme (EU ETS) which airlines will pay into from January 2012. Other EU countries have reduced or are removing existing taxes prior to the introduction of EU ETS."
17 January 2017
Stansted Airport has made a bid to become Britain's next hub for long-haul travel, as passengers are promised seamless connection facilities and baggage transfer.
13 January 2017
Long-term goals such as travelling more and visiting new places have come above healthy eating and changing jobs in a list of the top New Year's resolutions.
14 January 2017
Some of the biggest airports in the UK have been forced to cancel flights as snow and blizzard conditions sweep parts of the country.
Stress could be as significant a risk factor for heart attacks and strokes as smoking, drinking and overeating, new research shows.
24 December 2016
Planned strikes by British Airways cabin crew on Christmas Day and Boxing Day have been suspended amid continuing industrial unrest ahead of the weekend break.
11 January 2017
A connection between diabetes and inflection in children could be a major breakthrough in developing a cure for type 1 diabetes, according to new research.
10 January 2017
A new trial aimed at tackling widespread loneliness among older people is successfully reducing isolation using community-based tactics, a report shows.
07 January 2017
People may be able to enjoy better brain health in later life by following a Mediterranean diet, research has suggested.
06 January 2017
Many Britons plan to cut down on the costs of their holidays in 2017, as part of their financial resolutions for the New Year.
05 January 2017
Holidaymakers have been encouraged to make the most of the fact 2017 boasts a pair of bank holiday weekends just two weeks apart.
04 January 2017
Holidaymakers are increasingly turning their attentions to trips which are all-inclusive, new research has suggested.
31 December 2016
Budget airline Norwegian has said it will launch ultra-low cost flights for as little at £56 to New York as it ramps up the pressure on its rivals.