Chancellor George Osborne signalled no change in government policy on Air Passenger Duty today in a Budget speech which made no mention of the tax.
Osborne announced a freeze in petrol duty and a cut in the duty on beer, but made no reference to APD.
However, documents released by the Treasury alongside the Budget measures showed projected revenue from APD rising year by year to 2017-18.
The Treasury has previously said APD would rise annually by the rate of inflation.
Government revenue from APD is forecast to rise 3.6% year on year to £2.9 billion in 2013-14 and to £3.8 billion in another four years.
Osborne did look to address business concerns by cutting the rate of corporation tax on profits to 20% from April 2015, hailing it as “the lowest business tax of any major economy in the world”.
He also announced help for home buyers. But otherwise the Chancellor said there would be no change in policy on deficit reduction and spending, insisting: “Cyprus is a sign the crisis is not over.”
APD rates rise on April 1 (Easter Monday), with a £2 increase in duty on economy long-haul fares to £67, £83 or £94 depending on the destination, but with no change in the short-haul economy rate of £13.