Pressure mounting on Chancellor to take decisive action on fuel

Chancellor George Osborne is coming under increasing pressure to take decisive action to tackle crippling fuel prices in next week's Budget.

It is expected the Chancellor will announce that the planned 1p increase in fuel duty is to be canned, though this will have no impact on prices which have risen more than thirty pence in two years.
80 percent of people asked by ComRes this week said that scrapping the fuel duty increase would not be enough.

Shadow chancellor Ed Balls will continue his pressure on the government Wednesday by tabling a Commons motion calling for the VAT rise to be rolled back on fuel, which would mean a 2.7p drop in the price of unleaded petrol, but would cost the Treasury around £700m.

Balls said: "We are going to be urging Conservative and Liberal Democrat MPs to join with us in voting in Parliament to urge the Chancellor to cut VAT on fuel now and give immediate relief to hauliers and motorists across the country."

The Budget is scheduled for next Wednesday 23 March amid widespread concern over the economy, which surprised commentators by shrinking 0.5 percent in the final quarter of 2010.
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