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... and if you feel like flying away from it all, there's a new air passenger duty on long-haul flights
People looking to soak up the sun and the culture of Sydney or Melbourne will soon have to pay £45 more for the privilege – or £90 if they want to fly first class.
Those looking to head to New York, Toronto or Rio will have to stump up an additional 20 under Chancellor Alistair Darling's changes to air passenger duty (APD).
Mr Darling said that he had decided not to scrap the duty and replace it with a new tax on aircraft, as had been requested by tour operators. Instead he raised the charges for long-haul flights, split over two years.
For those travelling around the UK by air, or to Europe, the current 10 tax rate will rise to 11 next November and 12 in November 2010. Band B, covering flights of up to 4,000 miles, including Egypt and the United States, rises from 40 to 45 and then 60.
For those going further afield, to the Caribbean, duty will rise from 40 to 50 and then 75, while duty paid by those flying to Band D destinations, including those in Australia and New Zealand, will increase from 40 to 60 and then 85. For all destinations the rates will double for those travelling in premium seats.
The Association of British Travel Agents warned that the increase would put off travellers to destinations such as the Caribbean and Kenya, whose economies are extremely dependent upon tourism, particularly from the UK.
EasyJet chief executive Andy Harrison said: "I am dismayed that the Chancellor has failed to carry through his commitment to reform a bad tax. All parties agreed that APD needed to be changed to a tax on planes not people."
The cost of running a car will also rise, despite the Chancellor backtracking over the plans to increase car tax.
Fuel duty will rise which effectively wipes out any reduction that would have taken place following the 2.5 per cent VAT reduction.
But Mr Darling did soften the blow by announcing a more gradual introduction of new vehicle excise duty car tax rates, with rates only going up 5 per vehicle in 2009.
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Saturday 26 May 2012
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