Planned increases to air passenger duty to be ditched

PLANNED increases to air passenger duty are to be ditched in the Budget as part of a series of measures from Chancellor George Osborne to help ease the burden caused by the austerity measures.

Treasury sources have told The Scotsman that cancelling the rise in air passenger tax will cost the government about 150 million.

While the move will save between just 1 and 9 a ticket, it is understood that it is part of a series of measures aimed at providing relief as low and middle earners have been hit by rises in VAT and personal national insurance contributions as well as the loss of some benefits, including child support for households with a higher tax-band earner.

The government has also come under severe pressure from airlines to drop air duty, as they have been hit by rising fuel costs.

It is expected further help will be provided by freezing petrol duty, although there is unlikely to be any concrete proposal for a fuel price stabiliser.

Yesterday Mr Osborne also made it clear that there would be no new nasty shocks in the Budget.

He said: "Having undertaken the rescue mission, I do not have to come back and ask for more this year.

"I can say in the Budget this week I am not going to be asking for more tax rises or spending cuts."