Another Budget U-turn as George Osborne announces 3p fuel duty rise is to be axed
Fuel duty is to be frozen for the rest of this year George Osborne announced this afternoon – in yet another budget U-turn.
Petrol prices were due to go up by 3 pence in August and just this weekend the Transport Secretary Justine Greening insisted that the rise would go ahead.
But in a move underlining just how worried the Government is about pressures on the cost of living the Chancellor announced in the Commons that the rise would now be delayed until next year.
Mr Osborne said the £500 cost of the freeze would be paid for by larger than expected savings made by Government departments.
However the move will be seen as a victory for Labour who tabled an amendment to the Finance Bill, due to be discussed next week, calling for the fuel duty freeze.
This morning Ed Balls, the Shadow Chancellor, wrote an article in The Sun calling on the Government to freeze the duty.
Announcing the move in Treasury questions Mr Osborne said the freeze would be good for economic growth.
“This means that fuel duty will be 10p a litre lower than planned by the last Labour government,” he said.
“We are on the side of working families and businesses and this will fuel our recovery at this very difficult economic time for the world.
“The one-off cost of this change will be fully paid for by the larger than forecast savings in departmental budgets and we will set out details of those as usual in the autumn statement.”
But the move – following u-turns on charity and pasty taxes – shows just how concerned the Government is about the electoral backlash on moves that affect the cost of living.
Downing Street has instructed ministers to inform them of any policies that could effect household spending in an attempt to ensure that the Government does nothing to make people worse off.
Oscar Pistorius trial: Defence's own witness contradicts athlete's version of events
Oscar Pistorius trial: The case against Oscar Pistorius – and why the prosecution claims his story doesn't add up
South Korea ferry: Captain Lee Joon-seok could face criminal investigation as over 280 remain missing
Peaches Geldof dead: Private funeral for the family and friends of the socialite will take place next week
Shropshire criminals ‘using unmanned drones and infrared cameras to find illegal cannabis farms’ – and then steal from the growers
The food poverty scandal that shames Britain: Nearly 1m people rely on handouts to eat – and benefit reforms may be to blame
US Navy christens huge $3 billion destroyer ship USS Zumwalt that appears as a fishing boat on enemy radar
Scottish independence: It is the English who should be on their knees, begging the Scots to vote ‘No’
Nigel Farage fatigue? Half of voters ‘immune’ to Ukip’s appeal
Nigel Farage on Have I Got News For You: Ukip leader ridiculed over expenses and party 'fruitcakes'
Nigel Farage: I’m taking on the status quo, and the Establishment’s fighting back
- 1 Poveglia: 'World's most haunted island' up for sale...is anyone brave enough to buy it?
- 2 The Hobbit: There and Back Again set for possible title change
- 3 Video of British Muslims dancing to Pharrell Williams's hit Happy attacked as 'sinful'
- 4 24 people applied for the 'world's toughest job', here are their interviews
- 5 Andre Johnson: Wu-Tang Clan-discovered rapper severed his penis and jumped from LA building
£150.00 per week: QA Apprenticeships: This company is a company that specializ...
£153.75 per week: QA Apprenticeships: This company is an innovative outsourcin...
£150.00 per week: QA Apprenticeships: This company has been providing on site ...
£150.00 per week: QA Apprenticeships: We've been supplying best of breed peopl...