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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."
21 April 2017
Want to lower your risk of suffering cancer or heart disease? Then get on your bike.
20 April 2017
Researchers have made a significant breakthrough in understanding the way in which breast cancer grows and spreads.
19 April 2017
Budget airline easyJet has apologised over an incident in which two passengers were ordered to leave an overbooked flight.
14 April 2017
Holidays have topped the priority lists of people approaching retirement, with close to two thirds (64%) aiming to go on more trips once they leave the world of work behind.
13 April 2017
A major bank has outlined plans to become more "dementia-friendly".
12 April 2017
Restrictions should be put in place to curb the drinking of alcohol before early-morning flights, a House of Lords committee has suggested.
11 April 2017
Drivers heading to airports and ferry ports this bank holiday weekend have been told to expect heavy traffic.
People who are beginning to notice signs of grey hair have more to worry about than their image.
07 April 2017
Women who live in built-up areas could face a higher risk of developing breast cancer, according to a new report.
06 April 2017
It's well known that oily fish like mackerel is good for the heart and the brain but experts are now considering whether it can also help people with diabetes.
05 April 2017
The UK could face a "damaging" drop in flights if an aviation deal can't be sorted quickly in the Brexit negotiations, a travel trade group has warned.
04 April 2017
BBC broadcaster Victoria Derbyshire has revealed that losing her hair while undergoing chemotherapy was the "worst bit about cancer treatment".