Fuel duty will be delayed

Tue, 22 Jul 2008



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 ."
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