Government cancels fuel duty rise

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The government has cancelled a three pence per litre rise in fuel duty which was due in August.

The Labour Party had threatened to force a Commons vote on the issue and called on all MPs to unite in scrapping the rise.

James Hookham, the FTA’s managing director – policy & communications said: “It went down to the political equivalent of penalties, but this time the public and businesses have got something to celebrate!

“The Chancellor’s decision is absolutely right for the economy and removes that extra cost for commercial vehicle operators that would have hit them hard this summer. The Chancellor now sees the merits of using fuel duty cuts to stimulate growth by keeping cash within businesses. The government needs to engage in a national debate about the role of fuel taxation in the economy and we urge the Chancellor to seize this opportunity.”

Fuel duty will be frozen for the rest of the year, the Chancellor told MPs, adding that the government was “doing everything we can in very, very difficult economic circumstances” to help businesses and consumers.

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