Welcome to this monthly Accounting News bulletin from DG Accountancy Services (http://www.businessbods.co.uk) bringing Small Business' news and information from the business world, as it happens!

Tuesday, 5 August 2008

Chancellor Alistair Darling has confirmed that a 2p rise in fuel duty scheduled for later this year will be postponed.

The annual rise in petrol tax had already been deferred from March until October and was widely expected to be scrapped due to the escalating price of oil.

In a statement to the House of Commons, the Chancellor said: ‘The global credit crunch and sharp rise in world oil prices have pushed up prices at the pump. Today's decision will help motorists and businesses get through what is a difficult time for everyone.’

Darling told the BBC that he intends to review the issue again in the Budget, insisting that it is the ‘right thing to do’ to help drivers and businesses.

Motoring groups have welcomed the announcement.

AA president Edmund King said: ‘We are delighted that the Chancellor has seen common sense. Many motorists have endured months of misery and this is a welcome piece of good news for them.’

However, the RAC argues that more action needs to be taken: ‘[The delay] does not go far enough. We would like to see the Chancellor not just postpone future rises but actually cut fuel duty.’