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 The government decided not to replace air passenger duty with a per-plane tax, which would have meant freighter operators also paying the tax, which is supposed to help offset the environmental cost of flying. 

Last year, IFW spearheaded a campaign protesting at the proposal, which the government has concluded would be illegal under international law.

It would have jeopardised the UK’s competitiveness as a place to do business, the Freight Transport Association (FTA) said. 

FTA Head of Supply Chain Policy Christopher Snelling said: “Air freight is hugely important to the UK’s logistics industry. 

“By value alone it accounts for a quarter of all imported goods moved in the UK. Replacing air passenger duty in this way would only have served to push business away from our airports and towards those on the Continent, while saving nothing in emissions.” 

Meanwhile, accountant and shipping adviser Moore Stephens said the Budget appeared to be good news for shipping “in that the government proposes not to tax foreign income or capital remitted to the UK for the purposes of commercial investment in UK businesses”. 

This will benefit the many non-UK shipping companies that make investments in their business in the UK. 

Moore Stephens said the Budget also included a change in the rate of capital allowances on ships that are leased to tonnage tax companies. 

And there is also a new provision whereby a UK company operating through a foreign branch can apply to exempt the profits of the foreign branches from UK corporation tax. 

Finally, the rate of corporation tax will be reduced by 1% from April, to 26%, with the pledge that by 2014, it will be 23%.