U-Turn As Fuel Duty Frozen For The Year
Chancellor George Osborne has scrapped August's planned 3p rise in fuel dutyand frozen the tax for the rest of the year.
The £500m boost to motorists can be paid as a result of departmental savings across Whitehall, the Treasury said.
Announcing the measure to cheers from Tory benches in the Commons, Mr Osborne said fuel duty would now be 10p a litre lower than under the plans inherited from Labour.
"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," he said.
Conservative MP Robert Halfon, who has led the Commons campaign for a fuel duty freeze, said: "Motorists across the country will welcome the cut in fuel tax announced for August.
"It will greatly improve the performance of the economy."
But Labour MP Jim Cunningham asked why Mr Osborne did not announce the freeze when other Budget U-turns were unveiled over the so-called pasty and charities taxes.
The Chancellor said: "Last year we cut fuel duty and froze it. This year we have frozen it again. You should welcome that."
Economic Secretary to the Treasury Chloe Smith said pump prices were 10p a litre lower than under Labour's planned duty rises.
She added: "They scheduled in 12 fuel duty rises while they were in office and six more for afterwards."
RAC Foundation director Professor Stephen Glaister said: "This is good news for drivers and good news for the country. Given that tax makes up around 60% of the pump price, falls in the price of oil were only ever going to go so far in easing the financial burden on motorists.
"Road transport powers the nation's economy and it is welcome that the Chancellor recognises the huge pressures the country's 35 million drivers are under with transport being the biggest single area of household expenditure bar none.
AA president Edmund King said: "This is great news for all motorists as drivers will breathe an enormous sigh of relief with summer holidays about to take off.
"A duty increase at the same time as the Olympics would have cast a shadow over the UK."
He went on: "What we now need more than ever is fuel price transparency to make absolutely sure these benefits are passed on to drivers in their entirety.
"Today's announcement and (Transport Secretary) Justine Greening's call for fuel price transparency has placed this Government at the forefront of looking out for the interests of drivers, business and families."
Mr King said deferring the 3.02p-a-litre increase until next year will spare a two-car family from a £6.41-a-month leap in petrol costs.
Had it gone ahead, from petrol sales alone, it would have siphoned £1.6m a day from consumer spending into the pump and knocked out a third of price cuts since the record highs in mid-April.
what do you think?
Wow lets all bow down in gratitude eh!!! Wasters!!!!!!!
Thats big of him. I'm just going to be rushing out to fill the tank on my landrover. This car is a nessesity for me, not a luxury. It costs a fortune to run. We need a serious fuel reduction here.
Remember -what the tories give you with one hand, they take double away from you with the other. Whitehall departmental 'savings' my foot!
Any rises that are scrapped must be a good thing no matter what the reasons, Remember the Coalition inherited a country on its knees because of Labour Borrow Borrow policies, Savings are being made particularly from the 'Benefit Brigade'.
If the country was on it's knees, the coalition haven't done much to get it up again. Same old Tory bs, blaming their problems on a government from the past. Two years you lot have been in, and the country has never been in a worse state. One petty little halt in tax, and you think all is on the up. Get a grip.
tell me displayim all these savings the government are making by removing benefits from the most needy people in our society ie the old. disabled low paid workers etc. how much exactly do you think you yourself are going to be better off
labour never borrowed any more then 2.9% of GDP
Michael Mcardle is right ... the government are taking from the needy and in Ovember when lots become homeless we will see the damage they have done!
don't like the truth Tory boys
Well I never thought I'd agree with aa aa on any issue, but well said my friend
The record sales of mid April was effectively due to the country mass panic buying, the consumer conned once again by the government, paying over inflated prices for fuel, while they sat back rubbing their grubby mitts and smiling, fuel is still ridiculously priced and this So called reduction and its attempts to justify it as such is nothing but patronising
Sharon, any fuel purchased over the normal amount in April, was offset by it NOT being purchased in May. No-one benefited from that cockup, except from some garages that hiked their prices.
Nothing to do with figures released on the same day showing Govt spending is 3bn over target. Purely co-incidence, that....
Another SPRAT to catch a MACKEREL.Fuel duty frozen,so ,why dont they thaw it back out ,knock the PRICE down by 10p a litre ,then re-freeze it.
Whilst the freeze is good news,60% tax of fuel is pure extortion.Typical rip-off Britain
the scrapping of the fuel duty rise is nothing but a con trick. anyone with half a brain new osbourne was never gonna implement the rise. he always kept this little scheme in his back pocket. was always gonna use it to try and show that they were indeed a careing listening party. well it aint gonna work the majority of the electorate have seen them for what they are. the party of the rich. we see how much contemt they have for the unemployed . sick. and indeed the working classes. torries through and through .the sooner they are voted out the better.
This comment has been removed for violations of our Terms and Conditions.
The current government and all previous ones are uncaring ... we need a totally new party to vote for...
Well, that's good news, but when will he learn that a tax on transport is one of the worst taxes that anyone can devise? This was recognised 150 years ago when the then Chancellor tried, unsuccessfully, the end the duty on railway passengers. It took until 1929 until that happened.
This comment has been removed for violations of our Terms and Conditions.
Take the tax off fuel it would only amount to 40/50 pence a litre.
Big licks, yet they still penalise the mentally ill and have made it so that those claiming housing benefit under the age of 35 will only get a limited amount. Meaning plenty of more on the homeless list in November of 2012!
Windows Live User
Too True Big Society Cameron calls it
ime thinking of getting myself an accordion that is if i can find a patch to busk that hasnt already been taken by a foriegner. i wonder are they declaring the money they make. just a thought
Steven James Farmer
10-1 petrols at least 3p dearer in 3months.
Windows Live User
Cheers from Tory backbench? They aint on this planet. This will save me around £0.25 per week Now what should I spend it on? A Tory rosette perhaps LOL These idiots will cheer at anything to make themselves look and feel good. Small kids
it may only save you £0.25 per week - so far the Tories have cancelled £.10 of labours planned fuel tax rises that they inherited Having lost my job under Labour, I took a job the means I have a 1000 mile a week commute So far the Tories have saved me £12.50 per week, it is very welcome.
keep them poor , keep them hungry ,keep them in debt , and let them think we care and they will work hard (if they have a job) and pay taxes that will keep us rich .... and the policy of human governments throught history is it not !!!
keep the poor poor this will make them work harder. keep the rich rich this will make them work harder
The comments on here seem to suggest that most of the posters are disappointed that they can't winge about increased fuel duty. You know the chant. Heartless tories couldn't care about joe public etc etc.Lighten up and be glad that as 90% of our food etc travels by road that this should at least hold down transport prices.
dave i have read many of your comments on this forum and i know youre not as gullible as you come across with this statement. the price of fuel will continue to rise over the coming months thereby ensuring the government wont lose anything in the long run and transport costs will continue to go up
Hi Michael. Fuel prices may or may not rise over the coming months who knows. What is certain is that had this increase gone ahead they would have increased by 3.02p per litre + vat for sure.. Our supermarket prices are down 6p a litre since March
Let remember these fuel rises were inherited from Labour To date the have cancelled rises of 10p per litre that labour had put in place
We were also on our way out of recession under labour
How can they claim it to be a price cut when it has not been implimented. Don't forget the Tory friends in the oil companys that have not passed on the cuts in the price of fuel this gives the Chanceler extra revenue by way of FUEL DUTY AND VAT.
clever man ? put 50p on the price of fuel then knock 10p off yea not so clever we are a bit smarter than u think georgy boy yea boys trying to run a country ?