George Osborne 'to scrap rise in fuel duty'

George Osborne could bow to demands to defer a planned 3p hike in fuel duty, reports the Daily Mail.

Chancellor George Osborne Credit: Stefan Rousseau/PA Wire

The rise is due to come in at the start of the year, but Conservative backbenchers now say the Chancellor is set to delay it further, heading off a threatened mutiny.

Labour is putting forward a Commons motion today, calling for a three-month freeze in the levy, which is already the highest in Europe.

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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.