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Labour's Ed Balls urges fuel duty rise delay Labour's Ed Balls urges fuel duty rise delay
(about 1 hour later)
Labour has said it will attempt to force the government to delay the 3p-a-litre rise in fuel duty due to come into effect in August.Labour has said it will attempt to force the government to delay the 3p-a-litre rise in fuel duty due to come into effect in August.
When MPs debate the Budget next week, the party will put down an amendment seeking to put off the increase until at least January next year.When MPs debate the Budget next week, the party will put down an amendment seeking to put off the increase until at least January next year.
Writing in Tuesday's Sun newspaper, shadow chancellor Ed Balls accused the coalition of "clobbering" families. Writing in Tuesday's Sun newspaper, shadow chancellor Ed Balls accused the coalition of "clobbering" families.
A Treasury source said the rise was actually the last from Labour's Budget.A Treasury source said the rise was actually the last from Labour's Budget.
The source, speaking to the BBC, accused Labour of "hypocrisy", adding that Mr Balls had voted for the rise at the time.The source, speaking to the BBC, accused Labour of "hypocrisy", adding that Mr Balls had voted for the rise at the time.
The source said that the government had taken action to ensure that fuel was 10p cheaper than it would have been under a Labour government.The source said that the government had taken action to ensure that fuel was 10p cheaper than it would have been under a Labour government.
In his March Budget, Chancellor George Osborne said the plan to raise fuel duty by 3.02 pence in August would go ahead.In his March Budget, Chancellor George Osborne said the plan to raise fuel duty by 3.02 pence in August would go ahead.
In the Sun, Mr Balls said: "With Britain now in a double-dip recession, the last thing our economy needs right now is another tax rise adding to the squeeze. The government should be giving our economy a boost - not clobbering families, businesses and pensioners just at the wrong time." Mr Balls told BBC Radio 4's Today programme: "Since the beginning of the year there's been a 20% fall in the oil price but so far no fall in the pump price for motorists.
Labour says putting off the rise until next year would cost between £500m and £600m. "The government's got a decision to make in the next few weeks - do they go ahead with this duty rise in August?
"In my view, the government should be pressurising the oil companies to get the pump price down not giving the oil companies an excuse to raise prices by 3p or 4p a litre."
'Difficult decisions''Difficult decisions'
It suggests paying for it with the £500m underspend in the Olympics budget or by closing tax loopholes and reversing changes to tax allowances for pension contributions for those earning more than £150,000. Labour said putting off the rise until next year would cost between £500m and £600m.
It suggested paying for it with the £500m underspend in the Olympics budget or by closing tax loopholes and reversing changes to tax allowances for pension contributions for those earning more than £150,000.
Mr Balls said: "Difficult decisions are needed to get the deficit down. That's why Labour put up fuel duty in the past. But we often delayed or cancelled planned duty rises based on the circumstances at the time - including at the height of the global financial crisis."Mr Balls said: "Difficult decisions are needed to get the deficit down. That's why Labour put up fuel duty in the past. But we often delayed or cancelled planned duty rises based on the circumstances at the time - including at the height of the global financial crisis."
Last week the prime minister said the rise would be "looked at", but held out little hope for a delay, saying: "I think people sitting at home know that the government doesn't have a bottomless pit of money."Last week the prime minister said the rise would be "looked at", but held out little hope for a delay, saying: "I think people sitting at home know that the government doesn't have a bottomless pit of money."
One Liberal Democrat MP and several Conservatives have already indicated their support for calls for the rise to be scrapped.One Liberal Democrat MP and several Conservatives have already indicated their support for calls for the rise to be scrapped.
FairFuelUK, which campaigns for lower fuel prices, said hiking fuel duty by 3p per litre on 1 August "makes no sense either politically or economically" and would be a "toxic issue" for voters.FairFuelUK, which campaigns for lower fuel prices, said hiking fuel duty by 3p per litre on 1 August "makes no sense either politically or economically" and would be a "toxic issue" for voters.
Its spokesman, Quentin Willson, said: "MPs of all parties need to have the courage of their convictions, put party issues aside and come together to vote against the rise."Its spokesman, Quentin Willson, said: "MPs of all parties need to have the courage of their convictions, put party issues aside and come together to vote against the rise."
Last month, Transport Secretary Justine Greening said she would consider legislating if the fuel retailers did not pass on falls in oil prices to their customers.Last month, Transport Secretary Justine Greening said she would consider legislating if the fuel retailers did not pass on falls in oil prices to their customers.
Should the government delay the rise in fuel duty? Send us your comments and experiences using the form below.Should the government delay the rise in fuel duty? Send us your comments and experiences using the form below.