THE CHANCELLOR, Alistair Darling, has scrapped his planned increase in fuel duty.

Announcing the decision today Mr Darling said:

'I've said for a long time now that I would look at the decision again. The House of Commons is about to rise for summer recess it's quite clear to me that the very high oil prices at the pumps are affecting motorists and businesses so I've decided to make the position clear now as I said I would.

'I'm going to postpone this increase. I'll look at it again in the budget. This is a necessary step and it will help people through what is undoubtedly a difficult time.'

Shona supported the news.

'I have constantly asked that the Treasury cancel this 2 pence increase in tax on fuel which was planned for the autumn. With soaring costs, the increase couldn't be justified. So I'm pleased that the Chancellor has made his announcement now.

As a result of this decision, main road fuel duty rates will remain at 50.35 pence per litre after 1 October this year. This is 17 per cent lower in real terms than in 1999.

Planned increases in road fuel gases, biofuel duty rates and rebated oils rates will also be postponed.

Shona concluded:

'While I am pleased with this news, I will keep up the pressure on the planned changes in Vehicle Excise duty. The philosophy of linking car tax to the amount of pollution a vehicle causes is laudable. But there is no sense and logic in backdating the changes.'

15 July 2008