Chancellor Alistair Darling provided some relief for motorists this afternoon by postponing the 2p a litre increase in fuel tax.
But there was no help for drinkers and smokers – with dramatic increases in the price of cigarettes, beer, wine and spirits.
The petrol duty rise had been due to come into force at the beginning of next month, taking prices at the pumps to more than £5 a gallon.
But it will now not happen until the autumn of this year.
The Chancellor said: “Fuel duty is due to rise again in April but because I want to support the economy now and help business and families I will postpone that increase until October.”
Without specifying the figures, he announced new first-year rates of road tax with much higher fees for people buying high polluting vehicles and a zero rate for motorists who buy cars with carbon emissions lower than EU targets.
Duty on tobacco was rising from 6pm today, adding 11p to the price of a packet of 20 cigarettes and 4p to five cigars. Beer will rise 4p a pint from Monday, cider 3p a litre, wine 14p a bottle and spirits 55p a bottle.
The winter fuel allowance for pensioners will rise from £200 to £250 for the over 60s and from £300 to £400 for the over 80s.
A planned increase in child benefit to £20 for the first child will be brought forward to April 2009, and other tax changes will help poorer families gain up to £17 a week.”
Corporation tax will fall from 38 per cent to 28 per cent next month.
Mr Darling also made a series of green measures, pledging to create laws by 2009 restricting the use of plastic bags and committing the Government to investigating a national road pricing scheme.
13 Comments
Does this really matter that its been put on hold, we’re paying far too much as it is and its still likely to go higher by its own accord.
its all a disgrace what they give you in one hand they take back off you with both just one big visious circle that will get worse threw greed.
Thank God, They’ve got some sense after all. Clutching at straws due to decreasing popularity maybe ? Now, lets see how the Motor Trade will suffer due to 4×4 hikes.
what else do you expect from a labour goverment
MSP. What on earth makes you believe it will be just 4×4 hikes or are you only 4×4 aware . The term gas guzzler will include MPVs and larger familly saloons in fact anything HMG decide to include. Most 4×4s are only two wheel drive for most of the time so its the carbon output not how many wheels are turning.
World oil demand is rocketing, we are at or very near to peak oil production. Fuel isn’t going to get any cheaper is it?
As long as people continue to drive big inefficient vehicles, and drive them over the speed limit (thus increasing consumption), that indicates that fuel is still relatively cheap because many people obviously feel they can afford to waste it.
Well from a Labour Govt I’d expect the less well off to pay much less tax, and the rich to pay more…who says we have a Labour Government?!
Alistair Darling has as much charisma as a wet Sunday in front of the box !!!
Vote for what you all want..makes no difference whos in parliment they will still rod us!!
Actually - what do we expect from any government these days? Nothing for us - sorry!
No Rabsta it’s ” New” Labour.
Labour had to sell there souls to “capitalism” to get into power.
I bet your old labourites are turning in there graves!! and this lot should be!!
A disgrace to Labour values and a disgrace to Great Britain.
i live in Canada. and petrol is about 60p a litre… come to Canada folks.
Its certainly creating a market for fuel efficient cars.
Fuel price for most people makes no difference to the mileage they do. They just have to spend more money to travel.
Put fuel up by a third, makes no difference.
Seen it almost double in the last 10 years with even more traffic on the road now than then.
Fuel duty (along with showroom taxes and increases in road tax) are just a way of government getting money. Nothing to do with environment and doesn’t make much difference to what sort of car people drive.