Motorists breathe sigh of relief as fuel duty frozen

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Chancellor George Osbore announces another U-turn from his Budget plans

Scottish news: Motorists breathe sigh of relief as fuel duty frozen

by Katie Myhill

Chancellor George Osborne has scrapped plans to introduce a 3p rise in fuel duty in August.

The freeze in tax has been welcomed by motorists but Mr Osborne has been criticised by fellow MP’s for his “shambolic” organization of the budget and his initial decision to enforce the increase despite fuel costs being at a record high.

The move marks the fourth U-turn since the Chancellor’s budget was introduced in March.

Mr Osborne’s decision was announced on the day the Office of National Statistics released a report showing that the poorest fifth of the population were bearing the brunt of the Conservative’s austerity measures.

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This coincided with Labour’s announcement that they planned to oppose the fuel duty hike alongside rebel Conservative MP’s, SNP’s and motorist groups. Peter Carrol, founder of Fairfuel UK welcomed the decision and thanked the Government for “listening and acting” but stated that there was still long term issues, regarding fuel prices, which needed to be discussed.

Edmund Kind, the president of the AA also announced that deferring the 3p increase until next year will save a two-car family up to £6.41 a month.

The delay of the increase, which is set to be enforced next year will cost the Treasury £550 million however the Chancellor told the commons: "The one-off cost of this change will be fully paid for by the larger-than-forecast savings in departmental budgets."

When questioned as to why the U-turn on fuel duty had not been revealed alongside the other changes to the initial budget, including the pasty tax and charity tax, Mr Osborne stated that “Last year we cut fuel duty and froze it. This year we have frozen it again. You should welcome that.”

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commented 2012-06-30 09:38:00 +0100 · Flag
This is a Labour programme that was happily continued by the Tories.
Scotland is a fuel rich nation but because of Westminster policies we still have pensioners dying of hypothermia because they cannot afford to heat their homes.
This is a shameful and disgusting situation.
We need to control our own resources.
published this page in News 2012-06-27 14:53:57 +0100