Osborne scraps plans to increase air passenger duty

AOL Travel

At last, some good news for holidaymakers! Chancellor George Osborne has scrapped plans to increase air passenger duty in the budget due this week.

Under plans introduced by the previous government, the Treasury was due to bring in the rises next month, in line with inflation. This means a family of four would have faced a £351.90 tax on a long-haul holiday, an increase of around £16.

The decision to ditch this plan will be welcomed by airlines and passenger groups at a time when spiralling oil prices are putting a huge strain on finances.

The issue of oil prices will be addressed when the Chancellor delivers his second Budget on Wednesday.

Ministers are still considering plans for a form of the fuel duty stabiliser, which cuts taxes when oil prices are high. This was promised by David Cameron in Opposition.

With fuel duty rising on airlines, it is unlikely that passengers will see any appreciable cut in the cost of airline fares, but scrapping the expected rise in air passenger duty will at least be some consolation.

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