Fuel Card News Motoring Updates: Government scraps 3p fuel duty

Chancellor of the Exchequer, George Osborne, has announced the 3p rise in fuel duty which had been scheduled to take place in August will not go ahead until after the end of 2012.

This follows mounting pressure from campaign groups such as FairFuelUK which received over 300,000 signatures from the public opposing the hike, as well as gaining the support of 50 MPs across all parties.

Last week, David Cameron began to buckle under pressure from senior Tory ministers who were concerned they would lose vital support from poorer voters on this issue, and today the Labour party also called for the hike to be scrapped threatening to force a House of Commons vote on the issue.

Mr Osborne 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."

The Chancellor’s statement that this would fuel recovery echoes a CEBR report, commissioned by FairFuelUK, which suggested a 2.5 pence reduction in fuel duty would stimulate growth and create 175,000 jobs within a year.

Quentin Willson, national spokesman for FairFuelUK said: “For months FairFuelUK has pushed, argued, pleaded and proved to the government that scrapping the August duty rise would be essential to the economic future of this country. 

“Thankfully, the Government has listened and have acted for the good of struggling consumers across the UK. This is democracy at its very best where a government and a Chancellor can review decisions, and act with fairness and common sense.”

“Businesses and hard-working families across this country will breathe a grateful sigh of relief, at least for the rest of this year. Well done to every MP and Minister who has listened.”

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