Cameron hints at action over fuel duty

THE Prime Minister has dropped a fresh hint that the Government will scrap a planned 1p-a-litre rise in fuel duty in next week’s Budget.

By The Newsroom

Published 17th Mar 2011, 06:00 BST

David Cameron said he recognised the “pain” that families and small businesses were feeling, as petrol prices crept over the £1.30-a-litre mark, and pointed out that the Budget was imminent.

The Government comfortably defeated Labour calls for the January VAT increase to be reversed for fuel to give assistance to struggling motorists, winning a vote by 301 to 236.

A Government amendment to the motion, which recognised the “significant impact of high fuel prices” and stressed that the Government was considering a “fair fuel stabiliser” was passed by 307 votes to 239, a majority of 68.

The Tories accused Labour of “opportunism” in calling for the VAT reverse, but Shadow Chief Secretary to the Treasury Angela Eagle said Tory and Lib Dem MPs had “missed an opportunity to put right some of their mistake on the VAT rise”.