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Government "looking at" fuel duty situation

By: Deborah Bates
28 January 2011

The Chancellor of the Exchequer, George Osborne, has told the BBC the government is "looking at" the current fuel duty situation, after many transport industry bodies spoke out about the proposed plans to increase it.

During an interview yesterday, it is thought when questioned about the plans to increase the fuel duty on April 1st, by one pence, Osborne claimed; "We can override it, we are looking at that."

His comment has come as a relief to the Road Haulage Association (RHA) and Freight Transport Association (FTA); and in turn, those in logistics and driving work. "This is very encouraging news," said the chief executive of the RHA, Geoff Dunning.

"It proves beyond doubt that the noise we have been making on this issue has not fallen on deaf ears," Dunning said on Politics.co.uk; however he added: "A duty freeze in April can only be regarded as a short-term fix. If we are to stand any chance of long-term growth, it is essential that we see a long-term solution to this problem."

Additionally, the chief executive of the FTA, Theo de Pencier, told Materials Handling World Magazine: "We welcome Mr Osborne's public support for scrapping the fuel duty rise but we want more than just warm words from the Chancellor, for the sake of UK businesses and the country's economic recovery."

"We look forward to seeing the small print."

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