Chancellor cancels rise in fuel duty

George Osborne
Chancellor cancels fuel duty rise Photo:

MPs from across the East have welcomed the Chancellor's announcement that he is cancelling a planned increase of 3p in fuel tax due in August.

Harlow MP Robert Halfon, who has led a campaign for a cut in fuel duty welcomed the news, saying it was good for families and would boost the economy.

Peterborough MP Stewart Jackson said he was delighted with George Osborne's announcement. South West Norfolk MP Liz Truss also welcomed the news. Great Yarmouth MP Brandon Lewis agreed it would families who benefitted.

The move comes just hours after Labour said they would force MPs to vote next week on whether or not the 3p rise should go ahead. Some Conservative MPs including Clacton MP Douglas Carswell had already said they would vote against the planned rise.

The cost to the Treasury of scrapping the planned increase in fuel duty is estimated to cost around £1.5 billion. At the time of the Budget in March there was a lot of pressure on Government to freeze fuel duty, but it was thought to be too expensive.

Labour say today's announcement is the latest in a number of "U-turns" on the Budget including a reversal on the so called pasty tax and proposals to put VAT on static caravans