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Back to Motoring & Home News


Coalition to postpone planned fuel duty increase


The government gave their strongest indication yet in parliament yesterday that they will defer January's 3p rise in fuel duty.

The Chancellor George Osborne was able to defeat a Labour-backed Commons vote after winning over Conservative rebels to back his plans.

The government victory should come as welcome news for British motorists and car insurance policy holders, who have faced rising fuel costs and household bills throughout the majority of the year.

Sajid Javid, the economic secretary to the Treasury told The Guardian their victory was a positive step, saying, "The government is doing all it can to help hard-working families with the cost of living and putting money back into their pockets. Action on fuel duty is part of this.

"Fuel duty is currently 20 per cent lower in real terms compared to its peak in March 2000 and 7 per cent lower compared to May 2010.

"If we had continued with the policies of the previous government, quite simply prices would be higher, fuel would be 10p more expensive per litre. I know some will call for a further freeze in fuel duty today. I can assure them this government understands the financial pressures hard-working families are facing. Subject to the constraints of the public finances, this government is determined to help families with the cost of living."

The Labour Party had proposed that any fuel duty increase should be postponed until at least April, although it now appears that the chancellor will address fuel duty in his Autumn Statement. The government eventually won the vote by 282 votes to 232, after the opposition used one of its debate days to launch the non-binding motion.


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