Osborne 'set to freeze' fuel duty

Conservative rebels said they expect the Chancellor to freeze a planned 3p rise in fuel duty for another three to six months. The Government has defeated a Labour motion to postpone the duty rise by majority of 48.

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George Osborne 'to scrap rise in fuel duty'

George Osborne could bow to demands to defer a planned 3p hike in fuel duty, reports the Daily Mail.

Chancellor George Osborne Credit: Stefan Rousseau/PA Wire

The rise is due to come in at the start of the year, but Conservative backbenchers now say the Chancellor is set to delay it further, heading off a threatened mutiny.

Labour is putting forward a Commons motion today, calling for a three-month freeze in the levy, which is already the highest in Europe.

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Rising fuel prices are 'number one consumer worry'

Ahead of tomorrow's vote in Parliament on a planned 3p a litre increase in fuel duty next month, the consumer organisation Which? has warned of the impact a rise in prices would have on household budgets.

Rising fuel prices are the number one consumer worry and people are already telling us they're having to cut back and dip into savings just to get by.

On the back of inflation-busting energy bill rises and increasing food prices, consumers can little afford another hit on their household budget. We're calling on the Government to think again about their plans to increase fuel duty in January.

The forthcoming Autumn Statement must focus on measures that will help put money back in the pockets of consumers, because the economic recovery is at risk if we don't increase consumer confidence.

– Which? executive director Richard Lloyd

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Consumer group's plea to Chancellor over fuel duty rise

Chancellor George Osborne is under renewed pressure to abandon a planned increase in fuel duty, amid warnings that the rising price of petrol was putting household budgets under unprecedented pressure.

As MPs prepare to vote tomorrow on the planned 3p a litre increase due in January, the consumer organisation Which? said more people than ever before were being forced to cut back on motoring costs.

Chancellor George Osborne.
Chancellor George Osborne. Credit: Olivia Harris/PA Wire/Press Association Images

It said its latest polling found a record 85% of people expressed fears about rising fuel prices - a nine point increase since July.

Those saying they would cut back on motoring costs rose seven points to 39% - another record high - while one in 10 said they had had to dig into their savings to cover their motoring costs.

Overall, one in three people said they were finding it difficult to live on their current income, with 33% also cutting back spending on the essentials last month. Getting on for half - 44% - said they were planning to cut back on food and groceries in the coming months.

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