Fuel duty increase cancelled

The Chancellor has scrapped August's planned 3p rise in fuel duty and frozen the tax for the rest of this year. The £550m cost of the change will be paid for by departmental savings across Whitehall.

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Nadine Dorries attacks Osborne over junior minister's Newsnight appearance

Economic Secretary Chloe Smith faced a difficult round of interviews as she attempted to explain the decision to scrap a planned fuel duty increase on BBC's Newsnight.

Conservative MP Nadine Dorries has blamed the Chancellor George Osborne for what is being regarded as a very poor performance by the junior minister.

Asked whether Ms Dorries would be disciplined for her attack on Mr Osborne, a source close to the Prime Minister said: "Nadine is Nadine, isn't she? What can you do?"


Energy chairman: 'Fuel duty u-turn should not have been top priority'

Conservative Tim Yeo, chairman of the energy and climate change committee told Channel 4 News tonight that the Government's u-turn on fuel duty would not have been his "top priority" and he "regrets" the option was chosen.

Tim Yeo, the Tory chairman of the Commons Energy and Climate Change Committee Credit: Andrew Parsons/PA Wire

Mr Yeo said: "I think the priority should have been to continue working to take low income families on less than £10,000 out of tax. That's a coalition priority and I think spending the money that way would have reached lots of low income families."


CBI: 'U-turn on fuel duty will help support the economy'

The CBI has responded on the Government’s decision to postpone its planned 3p-a-litre rise in fuel duty in August until January next year. Dr Neil Bentley, CBI Deputy Director-General, said:

This decision will be welcomed by hard-pressed families and businesses across the country.

A fuel duty freeze will help to support road hauliers and freight transport operators, making delivering our goods that bit more affordable, and supporting the economy during the challenging months ahead.

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