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Hold on fuel duty rise welcomed in North East

The 2p rise in fuel duty which was due to take effect in October was postponed this week. Chancellor Alistair Darling said the decision would help motorists and businesses “get through what is a difficult time for everyone”.

He said: “This measure is taken in response to sharp rises in world commodity prices, with the price of oil almost doubling over the past year to reach a real-terms record high of $146 a barrel recently.

“This has inevitably had significant knock-on effects on the price of road fuels, which the Government is committed to taking into account when considering decisions on fuel duties.”

The North East Chamber of Commerce welcomed the news that the Government has decided not to press ahead with its plans. Andrew Sugden, NECC director of membership and policy, said: “This is a move that NECC has been calling for for some time now and will prove extremely popular for both businesses and consumers alike that have faced incredible increases in fuel prices.

“The Government has received a tax windfall on the back of rising fuel prices and it’s entirely appropriate that there will be no further tax hike in October.

“However, this decision is only a postponement. Mr Darling should acknowledge the growing threat of inflation on business and consumer confidence and scrap this rise altogether.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .