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21/07/2008 09:08:30

Another Government U-Turn on fuel duty

The 2p rise in fuel duty due to happen in October has been shelved in another embarrassing climb down by the present Labour Government.

The Chancellor Alistair Darling said that the move was to reduce the strain on motorists and businesses in the wake of the credit crunch and record prices for oil.

However many motoring groups, such as the AA and the Freight Transport Association (FTA), have said that more should be done to ease the financial burden on motorists and the haulage industry.

With the average fuel duty in the rest of the EU at 25 pence per litre, the UK’s 50 pence per litre duty rate is putting a huge strain on the haulage industry, leading to increased costs and higher prices of goods for consumers as costs are passed on fuelling inflation.

The FTA urged the Government to sit down with the industry to bring about a practical means of making UK duty more in line with the EU average thus making UK hauliers more competitive with their continental counterparts.

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