Government cancels fuel duty increase

Fuel duty delayed
5 Dec, 2012 1:28pm Chris Ebbs

The Chancellor has scrapped the planned 3p per litre tax rise for January

The Chancellor George Osborne has delivered his Autumn Statement, and the good news for motorists is that the 3p per litre (ppl) fuel duty rise has been cancelled.

The increase was originally planned to happen in January, but Osborne has ditched the rise in order to help to ease the pressure on UK motorists.

Any hike would have coincided with bus and rail fare prices going up, and could have resulted in a political backlash for the Chancellor.

Osborne has been under growing pressure from a number of motoring groups as well as his own MPs. Originally planned for August 2012, Osborne had already postponed the hike once this year.

The next increase set for 2013/14 will come in September 2013. All rises will then be implemented in September each year rather than April.

During his speech, Osborne also announced that the Government would spend an extra £1 billion on UK roads, including improvements to the A1 as well as maintenance work.