Wednesday July 16, 10:11 AM
2p Rise In Fuel Duty Delayed
By Sky News
The Chancellor of the Exchequer has postponed the 2p rise in fuel duty which was due to take effect in October. Alistair Darling said the decision would help motorists and businesses "get through what
is a difficult time for everyone".
He will review the delay again in six months time.
Sky's Joey Jones said:"Had Darling decided to force this through he would have faced a public backlash, and a backlash from Labour backbenchers.
"As a result of this decision, however, there is little room for maneouvre in the Government's finances," he added.
The Freight Transport Association said it was "very good news".
Geoff Dossetter told Sky News: "This is extremely welcome. It will save our members £280m a year.
"Long term, however, we need to find a different way of taxing commercial vehicles. We would like to see fuel duty drop."
The RAC also said the Government should reduce fuel duty while Roger King from the Road Haulage Association said: "We think while oil prices remain so high there should be no increase in fuel duty at all."
Sky's business correspondent Joel Hills said: "The Government must be quietly hoping the price of oil will get so high that it has to come down."
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