George Osborne is to freeze April's proposed increase in Air Passenger Duty (APD) until next year as part of a package of measures designed to help encourage economic growth.

In setting out Budget 2011, the chancellor announced the government's intention to provide an additional 40,000 apprenticeships for young unemployed people. A further 10,000 higher level apprenticeship places will be created, along with 100,000 work experience opportunities over the next two years.

Elsewhere, Osborne revealed the Treasury would make "no further changes" to the rates of alcohol duty aside from increases on strong beers and a reduction on low-alcohol beers. The chancellor also confirmed that he had worked with culture secretary Jeremy Hunt on reforms to support philanthropic donations.

Administration of the Gift Aid system is to be simplified, while the benefit limits will be increased from £500 to £2,500. Osborne said: "[This] Budget is about reforming the nation's economy, so that we have enduring growth and jobs in the future.

"That we are able now to set off on the route from rescue to reform, and reform to recovery, is because of difficult decisions we've already taken." Leisure organisations have offered a mixed response to Budget, with the Board of Airline Representatives in the UK (BAR UK) welcoming the decision on freezing the APD hike but said more could still be done.

BAR UK chief executive Mike Carrivick said: "The chancellor's decision not to increase APD is a welcome development but does not go far enough. "The UK travel industry already pays the highest aviation taxes in Europe and the existing APD levels do not take into account the EU Emissions Trading Scheme, which airlines will pay into from January 2012."

The British Beer and Pub Association (BBPA) has criticised the retention of the beer tax escalator. BBPA chief executive Brigid Simmonds said: "This policy hampers growth and damages pubs and the communities which rely on them. "Increasing the tax on beer in line with other types of drinks is also a missed opportunity to recognise beer's wider economic contribution."

Business in Sport and Leisure (BISL) has raised concerns about the government's intention to reform the tax regime for gambling machines, and has urged a rethink on the proposal. BISL chief executive officer Dominic Harrison said: "What the leisure and gambling industries don't need if we are going to play our part is a completely new tax regime that creates a year of uncertainty on rates."

Arts and Business (A&B) welcomed the government's plans regarding Gift Aid and philanthropy, saying it could have a 'significant' impact on the sector. An A&B spokesperson said: "Overall, the steps outlined in the Budget are undoubtedly steps in the right direction."

Kirk Kinsell, president of Europe, Middle East and Africa at InterContintental Hotels Group, said: "We were disappointed not to see a reinstatement of the carbon reduction commitment's recycling incentive as part of the chancellor's budget. "Instead of providing an incentive to reduce carbon consumption, the CRC is now a stealth tax which will cost our business, most of which are SMEs, an extra £2.3m in year one."

Richard Hathaway, head of travel, leisure and tourism at KPMG, said: "The delay in increasing APD should have a positive impact on the level of international travel and may help bring business and leisure passengers to the UK. "Beyond this, there wasn't much in the budget for hospitality and leisure businesses in terms of increasing domestic consumers' spending power or mitigating companies' significantly increasing input costs."

Stephen Studd, chief executive of SkillsActive, welcomed Osborne's announcement that additional Apprenticeship places were to be created. Studd said: "The additional capacity of 40,000 new apprenticeship places recognises the major issue of young, unemployed people in this country.

"From the 6 April, apprentices will have fully employed status from their first day. This change will give extra credibility to apprenticeships and lead to a subtle yet significant difference in the employer/employee relationship." Coffer Corporate Leisure managing director Mark Sheehan said: "The Budget offers little help to alleviate pressure on operators' suffering and does little to kick-start consumer spending.

"Altogether, the net increase in income tax and national insurance against savings for many earners will hit consumer spending further."