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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."

RMI chairman: 'Deferring fuel duty will give us time to prepare'

Brian Madderson, chairman of the Retail Motor Industry, has told ITV News that it was "excellent news for motorists" that the Chancellor has scrapped plans to increase fuel duty this year.

Mr Madderson said that although the decision was to "defer" the move, it would "give more time" to prepare for the George Osborne's Autumn statement.

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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.

PM spokesman: 'Fuel duty is a significant cost for many families'

Downing Street have said today that ministers were not informed of the Chancellor's decision to defer the increase in fuel duty at this morning's meeting of the Cabinet, which took place just hours before the announcement. The Prime Minister's official spokesman said:

Tax is a matter for the Chancellor. It should not be unexpected. Since coming to office, this Government has taken time to listen to the concerns of motorists.

This is a significant cost for many families so we have taken action to deal with that cost.

This is a deferral so there is a one-off cost for delivering it. The Treasury has made clear they will be able to find this from within existing spending plans. There is no change in the fiscal stance.

'Axing fuel duty prevents pressure on the cash flow of UK hauliers'

Director of Policy for the Road Haulage Association Jack Semple has said today that he is delighted at the Chancellor's decision to abandon the 3.02p per litre duty increase until 2013 at the earliest.

The Chancellor makes a u-turn on plans to increase fuel duty

Mr Semple said: "Today’s announcement will prevent further pressure being applied to the profitability and cash flow of UK hauliers in particular.

"The duty increase would have added £1,200 a year to the cost of running a truck. More widely, the Chancellor’s decision will be welcomed by businesses and consumers across the entire economy”.

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