News of a postponement to the fuel duty levy due to be introduced in August will be welcomed by those who have purchased a motor insurance quote across the UK.
The unexpected announcement by Chancellor of the Exchequer George Osborne in the House of Commons took many by surprise yesterday afternoon but for the majority it was quite a pleasant one. The 3p rise in fuel duty had been widely condemned by the motoring sector as well as industry and business leaders in all corners of the UK. Labour MPs with the backing of some back bench Tory MPs had also called for it to be scrapped only hours earlier.
Although the announcement had many opposition MPs calling it a victory for their party it is in fact a victory for the general public and the long suffering motorist. In the past few weeks fuel prices have dropped back a little from their record highs and the postponement of the August rise until at least 2013 should see the prospect of the £1.50 litre disappear for the rest of this year at least.
In fact just hours earlier figures from Whitehall revealed that the UK’s borrowing had risen to £17.9 billion in May, and experts were wondering how that money would be clawed back. The Chancellor’s decision means another half a billion pounds of revenue has now disappeared and Treasury officials it would seem will have to be at their creative best to recoup the missing millions.