Chancellor scraps fuel duty 'to help economic recovery'

The Chancellor told the Commons today that the Government were doing "everything we can" under 'difficult economic circumstances', after scrapping a rise in fuel duty. George Osborne said the fuel duty will now be 10p a litre lower than under the plans inherited from Labour:

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.


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.