Tax pledge cheer on alcohol and petrol

Drinkers and drivers were spared pain as George Osborne promised not to raise duties on alcohol or fuel.

Taxes on tobacco would also remain the same, following the "substantial increases" announced in March.

And the Chancellor scrapped Labour's controversial plan to increase the duty on cider by 10 per cent, saying this would come "just in time to celebrate England's progress to the quarter finals or else to drown our sorrows".

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The moves will be welcomed by campaign groups who slammed the previous government for "piling misery" on struggling pubs.

Although Mr Osborne ruled out any fuel duty increases, motorists will still face earlier-announced rises of 1p a litre in October and 0.76p a litre in January 2011.

And with VAT due to rise to 20 per cent in January, new-year pump prices will go up even further.

Motorists will also be hit by a rise in insurance premium tax.

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AA president Edmund King said: "There is some relief that there is not going to be more punishment at the pumps but motorists will face a double whammy in the new year."

There was also no immediate change to Air Passenger Duty (APD), but Mr Osborne promised to look at replacing it with a per-plane tax. Passengers still face a previously-announced APD rise in November.

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