The Chancellor, George Osborne, has confirmed a delay to this year's APD [Airport Passenger Duty] rise to 2012 and said the government will seek to change internatlonal law to allow a per plane tax to be brought in.
Giving his annual Budget speech in the House of Commons, Osborne said the government had "tried every possible option" to bring in a per plane APD, but had to conclude that it was illegal in international law.
Confirming the decision not to go ahead with this November's planned rise in line with inflation, Osborne said it had been decided to delay the rise until next year.
The news will be greeted favourable by the travel industry that has recenty formed an unprecedented "A Fair Tax on Flying" coalitin due to worries over the amunt of tax being levied on travel. Osborne told the House of Commons that the goverment will also look to change the banding system of APD that appears to consider the Caribbean to be further away than part of the US and Hawaii and bring private jets into the taxation system.
