FUEL

Hard-pressed drivers were given some respite when the Chancellor decided to scrap the 3p-a-litre fuel duty increase planned for January 2013.

The planned hike would have meant drivers filling an average tank would have had to fork out almost £2 more for petrol or diesel. But George Osborne said he was not merely postponing the 3p rise until April 2013 but axing it altogether.

He said it would help families and businesses across the country.

The decision was welcomed by AA president Edmund King. He said: "This decision avoids a new year's headache and a long hangover for all drivers and is very much welcomed by the AA. The Treasury may have thought a fuel duty increase in the winter, when petrol is usually cheaper, would have been easier. But, toasting the new year with Champagne at a lower duty rate than road fuel underlines successive governments' failure to spot the difference between a luxury and a necessity.

"In 20 years, UK motoring has cut its fuel consumption by 20% [12.8 billion litres], but contributes 144% more [£15.81 billion] in fuel duty tax."

Quentin Willson of FairFuel UK said: "We have worked tirelessly to convince MPs and ministers the 3p rise would be enormously damaging to the economic recovery.

"To their credit the Treasury and the Chancellor have engaged constructively and have made the right decision."

Friends of the Earth's executive director Andy Atkins said: "Motorists will continue to pay a heavy price until we wean our cars off of their dependency on petrol and diesel.

"A few pence off fuel duty is simply tinkering under the bonnet."