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.

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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.