Chancellor Urged to Block Fuel Duty Rise

The Chancellor, George Osborne has been urged, in the House of Commons, to block a fuel duty rise for Britain’s motorists.

During August, the duty on a litre of petrol and diesel is due to rise by three pence; which is set to take the price per litre of unleaded to about £1.47 before any other rises or falls.

However, speaking at the Treasury questions in the Commons, shadow chancellor, Ed Balls, has urged George Osborne to block the fuel duty rise; as he asked the Chancellor: “If the price of petrol is still higher than the £1.33 a litre of a year ago, will you commit now not to go ahead with the duty rise, or is the truth that you cut taxes for millionaires but don’t understand about family budgets?”

Responding to Mr Balls question, the Chancellor who admitted pump prices had risen over the past year, said: “The international oil price has gone up. I think it’s 10% higher than it was last year and that is why we cancelled some of the fuel duty increases.”

However, he added that the three-pence rise in fuel duty which is set to come into force in August was outlined by the then Labour government of which Mr Balls was a member, in March 2010; adding: “Since inheriting those fuel duty plans from you, I have cut fuel duty, cancelled the fuel duty increases you voted for and got off the fuel duty escalator you supported to make sure families are better able to cope with the economic mess you presided over when you were in the Treasury.”

Should the increase in fuel duty come into force in August, it is set to hit farmers and those living in the rural communities; who are already feeling the pressure from increased fuel prices, with Sir Barney White-Spunner, the new executive chairman of the Countryside Alliance, claiming fuel prices are more expensive for rural motorists compared to their urban counterparts, which they believe is a “bizarre” fact of life, given the dependence on the car in remote Britain.

Andrew Heskin specialises in accountancy for agricultural firms.

Posted in Andrew Heskin.