Dear Reader

NOT much excitement in Jeremy Hunt’s budget for holidaymakers. Nothing at all, in fact — although you could argue that for those still working, the 2p off National Insurance contributions might go towards an extra glass of vino on the Algarve this summer.

Pensioners will be worse off by nearly £800, due to stealth taxes and the freeze on income tax thresholds — and older people increasingly love to travel.

The so-called silver pound — money spent by those over the age of 50 — accounts for almost 60 per cent of the total UK travel and tourism market, according to Saga. Those aged between 6064 are the wealthiest in Britain as many have paid off their mortgages and downsized.

That’s one reason why the cruise market (below), is so strong. And I was struck the other day by how the BA Premium Economy cabin on a flight back from the Caribbean was almost entirely occupied by those aged 60-plus.

But for how much longer? Mr Hunt is increasing air passenger duty (APD) next month on premium economy and business class seats. What’s more, APD will rise in line with inflation for those in economy from April 2025, which is only just over 12 months away. The airlines pay the tax direct to the Treasury after quietly passing on the cost to passengers. The vast majority of European countries do not levy a similar tax.

It won’t help in-bound tourism either. ‘ Mr Hunt doesn’t understand that tourism boosts the economy,’ says Peter Stephens, founder of DialAFlight. ‘He removed the VAT incentives for tourists, and despite an avalanche of complaints from retailers he’s now making it even more expensive for them to fly here. France should award him the Legion d’Honneur.’