Balls calls for VAT rise reversal on petrol
Shadow chancellor Ed Balls has called on the government to reverse the recent VAT rise on petrol.
The recent 2.5% increase in VAT has pushed already record petrol prices even higher, and Balls claims that families are facing a 'cost of living crisis'.
The shadow chancellor said in an interview this week: "World oil prices are already very high, and the Chancellor has chosen, at this very moment, to raise fuel prices further, by pushing up VAT. I am urging him to reverse that increase."
Fuel duty is scheduled to rise by another penny at the end of this month, and some experts predict that this could combine with the troubles in the Middle East and North Africa to push the price of fuel by 5p a litre.
Prices are already at record highs after months of increases, but the 3p drop per litre would go some way to mitigating the rises.
Transport secretary Philip Hammond indicated last week that the government was considering what action could be taken against rising fuel prices in next month's budget.