The budget declared that the controversial Air Passenger Duty tax (APD) will not be increased, and instead the Government has put on hold any further rises until April 2012.

During the budget Chancellor George Osborne said that whilst holding any rises on APD, he would in fact impose a tax on private jets flying out of the UK. Private jets have previously avoided the APD.

Mr Osborne also confirmed that investigations into a tax per plane have been shelved as it is illegal under international law. The controversial APD tax has meant that travellers have seen steep increases in their flight costs, as much as £170 per passenger, for those flying on the longest journeys, and in premium cabins, as the tax currently is based upon the distance travelled between capital cities.

The travel industry has welcomed the budget announcement yet many industry heads have expressed concern that come April next year the increase could be double.