I thought it was a well known fact that the ANO does not apply to Balloon, microlights or glider pilots at all......
But seriously folks, yes the ANO and Rules of the Air do apply to Balloons just as much as any other flying machine.
And does anyone else find it really annoying that the legal bit of the CAA keep changing the numbering system? Everyone knows the low flying rule as Rule 5, so why keep changing it? If they want to 'add' new rules, add them at the end.....