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Fuel duty rise scrapped

By: David Howells
07 December 2011

The proposed rise in fuel duty has been scrapped by chancellor George Osborne, reports.

Earlier in the year the government unveiled controversial plans to raise fuel duty by 3.02 pence per litre, set to take place in January 2012. Now, however, the plans have been scrapped following pressure from FairFuel UK, as well as numerous logistics firms from around Britain.

Originally claiming that the money would help with the government's austerity measures, Osborne has since claimed that scrapping the proposed rise would help with business growth, hoping the firms will create more logistics work with the money they would have saved from the price hike.

The FTA - which claimed the price hike would add £325 million each year to the industry's fuel bill - has welcomed the announcement, though still claimed more could be done.

Speaking to of the news, FTA chief executive Theo de Pencier explained: "Today's decision will help to keep the wheels of the industry turning and shows that government has listened.

"However, the chancellor has not been bold enough. He should have ruled our the planned three pence per litre duty rise in August 2012 as, if world oil prices remain high and above $100 per barrel into next year, it will still hit industry hard."

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