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Business and Money Darling announces fuel duty rise will be postponed in latest tax U-turn

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Last Modified: 16 Jul 2008
By: Gary Gibbon

Under pressure over the economic downturn and Labour's poll ratings, the chancellor says the 2p rise in fuel duty will be postponed.

It's the second delay and follows Alistair Darling's decision in May to compensate people affected by the abolition of the 10p tax band.

In the Commons the Conservative leader said the government had taken action because of next week's Glasgow East by-election, just as Darling had made changes to the 10p tax plan before the Crewe and Nantwich poll.

But Gordon Brown said the delay had been announced because parliament was about to break up for the summer.

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