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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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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.

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