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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.

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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."

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