George Osborne dashes fuel price hopes

 

Drivers had their hopes of avoiding another petrol pump increase later this year dashed by Chancellor George Osborne today.

Motorists had wanted Mr Osborne to defer the planned August fuel duty rise in today's Budget.

But he said there would be no change to existing fuel duty plans.

He added that vehicle excise duty (VED) would rise by the rate of inflation, although it would be frozen for hauliers.

Road users are already forking out for record petrol and diesel prices and today's announcement from Mr Osborne was greeted with dismay by motoring groups.

AA president Edmund King said: "At a time of record prices at the pumps the August increase in duty is a budget blow-out which will force drivers off the road and could bring a summer of discontent for many.

"We have heard much about tax allowances but the increase in fuel duty makes no allowance for car-dependent, rural and disabled drivers.

"Only last week the Prime Minister told American students that UK fuel prices would make them 'faint', yet the Government seems intent on inflicting more pain for no gain on drivers.

"Ironically such a hike in duty doesn't necessarily help Government finances as people will cut spending at the pumps and in shops, and it could fuel inflation."

Professor Stephen Glaister, director of the RAC Foundation, said: "The Chancellor's decision to go ahead with the summer rise in fuel duty is as unsurprising as it will be disappointing to 34 million drivers, especially when the Chancellor acknowledges there is likely to be a further spike in oil prices.

"George Osborne said that taxes should be fair, simple, predictable and support work. Motoring tax fails on at least three of these measures and it is time for a review of exactly what fuel duty is for and who it impacts most."

Petrol now averages 139.67p a litre, with diesel at 146.39p a litre.

The August rise, including VAT, will put another 3.62p a litre on prices at the pumps, meaning that a typical 50-litre petrol refill will cost £1.81 more.

Quentin Willson, national spokesman for campaign group FairFuelUK, said: "The Government has turned its back on families and businesses all across the country - three-quarters of the electorate who want lower fuel prices.

"It ignores the threat of rising global oil prices - even the Saudis are trying to pull down the price of crude. And it ignores robust research we gave to the Prime Minister showing that cutting duty will create jobs, improve GDP and cost the Treasury absolutely nothing."

He went on: "This is a mortal wound for this Government's policies and its credibility. We showed them that cutting fuel duty by 2.5p would create 175,000 new jobs. How many jobs will be destroyed when the Government slaps 16p per gallon on in August?"

Road Haulage Association chief executive Geoff Dunning said: "The Chancellor's decision to go ahead with this rise is not only disappointing, the reason behind it is hard to understand."

Labour Treasury spokeswoman Cathy Jamieson said: "George Osborne says he can afford to give a tax cut for people earning over £150,000, but he can't afford to cut fuel duty for hard-pressed families.

"Drivers already facing record petrol prices are now facing a 3p rise in fuel duty in August. Labour's five point plan for jobs includes a temporary VAT cut which would take 3p off the price of a litre of petrol - and jump-start our stalled economy."

Government accused of 'stealth tax' on pensioners
Corporation tax cut to 24% in April
Unions criticise regional pay rates plan
Thousands escape child benefit axe
TV tax credit 'could end exodus' of big-budget shows
Smokers slam tobacco duty rise
Job fears over increase in beer tax increase
Plane passengers hit by air passenger duty hike
Anger over George Osborne's North Sea bid
Videogame industry celebrates tax relief in Budget
University research gets £100m boost
Ed Miliband condemns top rate tax cut
Estate agents warn that stamp duty raid could hit all homeowners
Government accused of producing a Budget 'for the rich'
George Osborne slashes 50% top tax rate
Osborne dashes fuel price hopes
Oliver Wright on the Budget: Now we have to look at what was NOT said
James Moore: Budget snap judgements
The Budget at a glance
Full text of the Budget speech

PA

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
News
Tangerine Dream Edgar Froese
people
News
Rob Lowe
peopleRob Lowe hits out at Obama's snub of Benjamin Netanyahu
News
Davies (let) says: 'Everybody thought we were having an affair. It was never true!'
people'Our friendship flourished online. You can share some very revelatory moments at four in the morning…'
Arts and Entertainment
Over their 20 years, the band has built a community of dedicated followers the world over
music
News
Staff assemble outside the old City Road offices in London
mediaThe stories, the writers and the changes over the last quarter of a century at Britain's youngest paper
Life and Style
The Oliver twins, Philip and Andrew, at work creating the 'Dizzy' arcade-adventure games in 1988
techDocumentary looks back at origins of the computer-games industry
Arts and Entertainment
Krall says: 'My hero player-singer is Elton John I used to listen to him as a child, every single record
music
News
Friends for life … some professionals think loneliness is more worrying than obesity
scienceSocial contact is good for our sense of wellbeing - but it's a myth that loneliness kills, say researchers
Arts and Entertainment
The Wu-Tang Clan will sell only one copy of their album Once Upon A Time In Shaolin
musicWu-Tang Clan and The Sexual Objects offer fans a chance to own only copies of their latest albums
News
i100
Environment
Number so freshwater mussels in Cumbria have plummeted from up to three million in the 20th century to 500,000
environment
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Austen Lloyd: Private Client Solicitor - Oxford

Excellent Salary : Austen Lloyd: OXFORD - REGIONAL FIRM - An excellent opportu...

Austen Lloyd: Clinical Negligence Associate / Partner - Bristol

Super Package: Austen Lloyd: BRISTOL - SENIOR CLINICAL NEGLIGENCE - An outstan...

Recruitment Genius: Sales Consultant - Solar Energy - OTE £50,000

£15000 - £50000 per annum: Recruitment Genius: Fantastic opportunities are ava...

Recruitment Genius: Compute Engineer

Negotiable: Recruitment Genius: A Compute Engineer is required to join a globa...

Day In a Page

Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign

What the six wise men told Tony Blair

Months before the invasion of Iraq in 2003, experts sought to warn the PM about his plans. Here, four of them recall that day
25 years of The Independent on Sunday: The stories, the writers and the changes over the last quarter of a century

25 years of The Independent on Sunday

The stories, the writers and the changes over the last quarter of a century
Homeless Veterans appeal: 'Really caring is a dangerous emotion in this kind of work'

Homeless Veterans appeal

As head of The Soldiers' Charity, Martin Rutledge has to temper compassion with realism. He tells Chris Green how his Army career prepared him
Wu-Tang Clan and The Sexual Objects offer fans a chance to own the only copies of their latest albums

Smash hit go under the hammer

It's nice to pick up a new record once in a while, but the purchasers of two latest releases can go a step further - by buying the only copy
Geeks who rocked the world: Documentary looks back at origins of the computer-games industry

The geeks who rocked the world

A new documentary looks back at origins of the computer-games industry
Belle & Sebastian interview: Stuart Murdoch reveals how the band is taking a new direction

Belle & Sebastian is taking a new direction

Twenty years ago, Belle & Sebastian was a fey indie band from Glasgow. It still is – except today, as prime mover Stuart Murdoch admits, it has a global cult following, from Hollywood to South Korea
America: Land of the free, home of the political dynasty

America: Land of the free, home of the political dynasty

These days in the US things are pretty much stuck where they are, both in politics and society at large, says Rupert Cornwell
A graphic history of US civil rights – in comic book form

A graphic history of US civil rights – in comic book form

A veteran of the Fifties campaigns is inspiring a new generation of activists
Winston Churchill: the enigma of a British hero

Winston Churchill: the enigma of a British hero

A C Benson called him 'a horrid little fellow', George Orwell would have shot him, but what a giant he seems now, says DJ Taylor
Growing mussels: Precious freshwater shellfish are thriving in a unique green project

Growing mussels

Precious freshwater shellfish are thriving in a unique green project
Diana Krall: The jazz singer on being friends with Elton John, outer space and skiing in Dubai

Diana Krall interview

The jazz singer on being friends with Elton John, outer space and skiing in Dubai
Pinstriped for action: A glimpse of what the very rich man will be wearing this winter

Pinstriped for action

A glimpse of what the very rich man will be wearing this winter
Russell T Davies & Ben Cook: 'Our friendship flourished online. You can share some very revelatory moments at four in the morning…'

Russell T Davies & Ben Cook: How we met

'Our friendship flourished online. You can share some very revelatory moments at four in the morning…'
Bill Granger recipes: Our chef serves up his favourite Japanese dishes

Bill Granger's Japanese recipes

Stock up on mirin, soy and miso and you have the makings of everyday Japanese cuisine
Michael Calvin: How we need more Eric Cantonas to knock some sense into us

Michael Calvin's Last Word

How we need more Eric Cantonas to knock some sense into us