The Government has also announced that it will once again cancel Labour's
planned fuel duty increase for September — meaning fuel duty has been frozen for five years, the longest period in two decades.
Suddenly, Mr Cameron is being haunted by broken promises to end top - down NHS restructuring, to cap banker bonuses at # 2,000 and to
limit fuel duty increases.
The key points announced today included: ยท The cancellation of the
3p fuel duty increase that was planned for 1 January 2013.
The chancellor said that following a fall in pump prices of over 20 pence per litre from the summer price, the postponed twp pence per
litre fuel duty increase will go ahead from December 1st.
It has been suggested in many quarters that VED should be abolished, and
fuel duties increased accordingly, insofar as the price of fuel has a greater incentive effect on reducing emissions.
One year on, he is now indicating that he is going to press ahead
with fuel duty increases, even though rising oil prices mean that pump prices have today reached a record high.
When we were in government, we
postponed fuel duty increases when the economy was weakened, when families were struggling, and that's what the government should do now.»
The budget did include a straight up tax break for investment in North Sea oil, as well as a freeze
on fuel duty increases.
Limiting benefit rises to 1 %, scrapping the
planned fuel duty increase, devolving power over teacher pay to schools and cutting corporation tax are steps in the right direction.
The Insurance Premium Tax increase on the average car insurance policy is still equivalent to
a fuel duty increase of almost 2p per litre.
However, for individuals and businesses alike it was encouraging to hear that
the fuel duty increase that was due to be implemented in September 2014 has been cancelled and there will be no further increase in the current Parliament.
Sadly I am a bit short of money because of
fuel duty increases to force me out of my car and higher home energy costs to fund wind turbines that only deliver 20 % of their generation capacity.