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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."
19 April 2018
A self-injected smart drug may be the key to easing and preventing pain for migraine sufferers.
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17 April 2018
Despite its reputation as a party drug, ketamine is licensed as an anaesthetic. A recent US study found use of the drug via a nasal spray led to "significant" improvements in depressive symptoms in the first 24 hours.
Simple brain-training exercises carried out at home have been shown to reduce emotional stress in female breast cancer survivors, it's recently been revealed.
13 April 2018
Drinkers who consume more alcohol than UK guidelines suggest could be cutting years off their lives, according to new research.
12 April 2018
A recent study has revealed that people who sustain brain injuries are at an increased risk of developing dementia later in life.
11 April 2018
Scientists have announced their latest breakthrough in the battle against Alzheimer's disease, after neutralising a high-risk gene in a human brain cell for the first time.
07 April 2018
The Philippines is set to shut its most famous holiday island of Boracay for six months, after the President described it as a "cesspool".
05 April 2018
Taxes on soft drinks, alcohol and tobacco - nicknamed "sin taxes" - could be a powerful step towards combating rising rates of chronic diseases worldwide, research has suggested.
New "one-stop shops" to speed up cancer diagnosis are being trialled across the country for the first time.
30 March 2018
Doctors should tell patients that e-cigarettes are less harmful than smoking but not without risk, according to new national guidance.
29 March 2018
Young people suffering from mental health problems are finding it hard to get the support they need, a survey has revealed.
28 March 2018
Children exposed to epilepsy drugs in the womb may achieve poorer test results at school, a study has suggested.