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Osborne 'set to freeze' fuel duty

Conservative rebels said they expect the Chancellor to freeze a planned 3p rise in fuel duty for another three to six months. The Government has defeated a Labour motion to postpone the duty rise by majority of 48.

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FairFuelUK: 'Fuel rise could cost 35,000 jobs'

FairFuelUK spokesman Quentin Wilson with protesters Credit: REUTERS

The campaign group FairFuelUK previously said it believed the tax hike could will raise only £800 million, compared to Treasury projections that it would bring in £1.5 billion.

It could also cost as many as 35,000 jobs, it said.

The group will be campaigning at parliament today ahead of the debate and vote in the Commons.

Its spokesman, broadcaster Quentin Willson, said: "The momentum building up behind FairFuelUK's call to see this damaging 3p rise scrapped is becoming unstoppable.

"The Treasury appears to be listening. We welcome Labour pushing on this issue. Consumers are currently paying an eye-watering 80p-per-litre in combined fuel duty and VAT.

"This is socially unjust and adding another 3p in tax doesn't make sense for economic recovery and deficit reduction."

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