Following on from controversial reports in
the
car finance news relating to
vehicle
excise duty, it appears that the Chancellor will postpone the
hike in
fuel duty for a six month period.
The levy on
fuel was due to increase in October, but Darling decided to
postpone the duty due to the hard time being faced by both
motorists and
businesses . Other planned fuel
rate increases will also be postponed.
In a statement released by the Treasury, Alistair Darling was
reported as commenting: The global
credit crunch and sharp rises in world
oil prices have pushed up prices at the pump,. Today's
decision will help motorists and businesses get through what is a
difficult time for everyone.
However, one London economist, Jonathon Loynes of Capital Economics
Ltd. reportedly commented: While the announcement might help
to ease some of the political pressure on the chancellor, the
economic implications are minimal.
Inflation is still heading much higher, and the economy is set
to slow much further, with very damaging effects on the public
finances .
