This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/uk_politics/7509156.stm

The article has changed 22 times. There is an RSS feed of changes available.

Version 5 Version 6
Fuel duty increase is postponed Brown defends fuel duty decision
(about 1 hour later)
The planned 2p increase in fuel duty this October is to be postponed. Gordon Brown has defended a decision to postpone a 2p rise in fuel duty after David Cameron suggested it was timed to coincide with next week's by-election.
This is the second time it has been put back - it was due to be introduced in March, but was delayed for six months because of rising oil prices. The prime minister said the move, which comes as oil prices continue to hit new peaks, would help people facing high food and fuel bills.
Alistair Darling said the move, which comes as oil prices continue to hit new peaks, would help motorists and businesses during difficult times. But the Conservative leader asked if it had "anything to do with the Glasgow East by-election".
Mr Brown said it was right to announce the measure before the Commons rises.
The price of unleaded petrol has risen 25% over the past year and pressure has been mounting for duty to be cut.The price of unleaded petrol has risen 25% over the past year and pressure has been mounting for duty to be cut.
The chancellor's announcement came ahead of a Conservative-called debate on fuel duty set to take place in the House of Commons on Wednesday afternoon. Can you tell us whether this decision had anything to do with the Glasgow East by-election? David CameronTory leader class="" href="/1/hi/uk_politics/7509245.stm">LIVE: Prime Minister's questions
The announcement was made by Chancellor Alistair Darling ahead of a Conservative-called debate on fuel duty set to take place in the Commons later.
At prime minister's question time, Mr Cameron said: "The government announced today that after months of dithering it is scrapping the 2p tax rise on fuel.
"Can you tell us whether this decision had anything to do with the Glasgow East by-election?"
Mr Brown replied: "It is right to announce, as we have done previously, a decision before the House rises (for the summer break)."
Months of miseryMonths of misery
The prime minister's spokesman said there were "lots of precedents" for announcements on fuel duty to be made before the parliamentary summer recess.
He said Mr Darling "decided to do it now because he wanted to end any uncertainty".
The Tories are proposing a "fair fuel duty stabiliser" which would lower the levy when the cost of fuel goes up and increase it when it drops.The Tories are proposing a "fair fuel duty stabiliser" which would lower the levy when the cost of fuel goes up and increase it when it drops.
The RAC welcomed Mr Darling's announcement, but said: "It does not go far enough. We would like to see the chancellor not just postpone future rises but actually cut fuel duty."The RAC welcomed Mr Darling's announcement, but said: "It does not go far enough. We would like to see the chancellor not just postpone future rises but actually cut fuel duty."
There's absolutely no reason why the chancellor should have been stampeded into making this decision and we have no indication how it's going to be paid for Vincent CableLiberal Democrats class="" href="/1/hi/uk_politics/7509245.stm">LIVE: Prime Minister's questions There's absolutely no reason why the chancellor should have been stampeded into making this decision and we have no indication how it's going to be paid for Vincent CableLiberal Democrats
AA president Edmund King said: "We are delighted that the chancellor has seen common sense.AA president Edmund King said: "We are delighted that the chancellor has seen common sense.
"The prospect of extra, government-inflicted pain was not something that road users were looking forward to."The prospect of extra, government-inflicted pain was not something that road users were looking forward to.
"Many motorists have endured months of misery and this is a welcome piece of good news for them.""Many motorists have endured months of misery and this is a welcome piece of good news for them."
Kate Gibbs, of the Road Haulage Association, said anything that helped the road haulage industry was "good news" although the postponement of the fuel duty rise represented "quite a small drop in the ocean".Kate Gibbs, of the Road Haulage Association, said anything that helped the road haulage industry was "good news" although the postponement of the fuel duty rise represented "quite a small drop in the ocean".
I'll look again at the matter again in the budget but I think that this is the right thing to do to help motorists and to help businesses Alistair DarlingChancellorI'll look again at the matter again in the budget but I think that this is the right thing to do to help motorists and to help businesses Alistair DarlingChancellor
But Lib Dem treasury spokesman Vincent Cable said: "There's absolutely no reason why the chancellor should have been stampeded into making this decision and we have no indication how it's going to be paid for."But Lib Dem treasury spokesman Vincent Cable said: "There's absolutely no reason why the chancellor should have been stampeded into making this decision and we have no indication how it's going to be paid for."
The decision was disclosed in a response to a parliamentary question tabled by a Labour backbencher.The decision was disclosed in a response to a parliamentary question tabled by a Labour backbencher.
Mr Darling told the BBC News Channel: "It's quite clear to me that oil prices, which are what's driving the prices at the pump, are gong to remain high for some time yet.Mr Darling told the BBC News Channel: "It's quite clear to me that oil prices, which are what's driving the prices at the pump, are gong to remain high for some time yet.
"So I've reached the view that it's right now, before the House of Commons goes away for the summer recess, to say that we're going to postpone the increase that was due in October."So I've reached the view that it's right now, before the House of Commons goes away for the summer recess, to say that we're going to postpone the increase that was due in October.
"I'll look again at the matter again in the budget but I think that this is the right thing to do to help motorists and to help businesses.""I'll look again at the matter again in the budget but I think that this is the right thing to do to help motorists and to help businesses."
'End uncertainty'
The prime minister's spokesman said there were "lots of precedents" for announcements on fuel duty to be made before the parliamentary summer recess.
He said Mr Darling "decided to do it now because he wanted to end any uncertainty".
It follows a series of demonstrations by lorry drivers demanding cheaper diesel. Figures show petrol prices have risen nearly a quarter during the past year, and diesel 36%.It follows a series of demonstrations by lorry drivers demanding cheaper diesel. Figures show petrol prices have risen nearly a quarter during the past year, and diesel 36%.
AA figures suggest the cost of a litre of unleaded petrol averaged 119.5p across the UK on Tuesday, with diesel averaging out at 133p.AA figures suggest the cost of a litre of unleaded petrol averaged 119.5p across the UK on Tuesday, with diesel averaging out at 133p.
Earlier this month, Gordon Brown signalled that delaying the 2p rise was a distinct possibility when he said it was something he was looking at "very, very carefully".Earlier this month, Gordon Brown signalled that delaying the 2p rise was a distinct possibility when he said it was something he was looking at "very, very carefully".
Fuel duty increases have been postponed a number of times over recent years when oil prices have been high.