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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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Fuel freeze 'funded by Government underspend'

Economic Secretary to the Treasury, Chloe Smith, said the freeze on fuel duty announced today would be funded through underspend in Government departments, but would not be drawn on which departments.

She told BBC2's Newsnight:

It is not possible to give you a full breakdown at this point because the figure is evolving somewhat,

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