Autumn Statement: Osborne cancels 3p fuel duty increase

Petrol nozzle

Motorists can breath a sigh of relief as the government's planned 3p increase in fuel duty has been scrapped, according to today's Autumn Statement from Chancellor George Osborne.

This will mean, there has been no rise in the price of fuel tax for the past two-and-a-half years.

"That is real help with the cost of living for families as they fill up their cars across the country. And it will help businesses too," said George Osborne.

The rise in fuel duty was set to take effect this January, although there had been calls for the government to delay the duty rise until April.

"The Chancellor had little option but to listen to the voice of British motorists and businesses and scrap the 3p fuel duty rise planned for January otherwise he would have faced a national outcry," says David Bizley, RAC technical director.

Although this is good news for drivers, fuel duty still accounts for almost 60% of what motorists pay at the pump, higher than any other major economy, according to figures from Institute of Economic Affairs.