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MPs to debate delaying January fuel duty rise until April | MPs to debate delaying January fuel duty rise until April |
(2 days later) | |
Labour is to force a Commons vote on Monday that it hopes will lead to the postponement of a planned 3p per litre rise in fuel duty in January. | Labour is to force a Commons vote on Monday that it hopes will lead to the postponement of a planned 3p per litre rise in fuel duty in January. |
Shadow chancellor Ed Balls revealed the bid to delay the rise for at least three months in a message on a political website. | |
He said putting off the increase would ease pressure on households. | He said putting off the increase would ease pressure on households. |
The Treasury said the postponement of earlier planned duty rises had already helped keep fuel costs down. | The Treasury said the postponement of earlier planned duty rises had already helped keep fuel costs down. |
Writing on the PoliticsHome website, Mr Balls argued that a strong economic recovery was not yet secure and families, pensioners and businesses were still feeling the squeeze. | Writing on the PoliticsHome website, Mr Balls argued that a strong economic recovery was not yet secure and families, pensioners and businesses were still feeling the squeeze. |
Tax avoidance | Tax avoidance |
Postponing the planned 3p rise until at least April could be paid for, he believes, by clamping down on tax avoidance schemes used by employment agencies. | Postponing the planned 3p rise until at least April could be paid for, he believes, by clamping down on tax avoidance schemes used by employment agencies. |
"There is a growing problem with some employment agencies forcing workers to become employees of an umbrella company," he wrote. | "There is a growing problem with some employment agencies forcing workers to become employees of an umbrella company," he wrote. |
"They then falsely inflate the worker's travel and food expense claims, reducing tax and national insurance, and pocket the avoided tax as profits. | "They then falsely inflate the worker's travel and food expense claims, reducing tax and national insurance, and pocket the avoided tax as profits. |
Mr Balls said: "Even if only a proportion of that money was recouped it could pay for the fuel duty rise to be put off until next spring." | |
Labour will use one of its allotted opposition day debates in the Commons to force the vote, which is non-binding. | Labour will use one of its allotted opposition day debates in the Commons to force the vote, which is non-binding. |
Pressure group the Taxpayers' Alliance launched a campaign earlier this year to have fuel duties frozen until 2015. | Pressure group the Taxpayers' Alliance launched a campaign earlier this year to have fuel duties frozen until 2015. |
Another campaign group, FairFuelUK, claims that allowing the 3p tax rise to go ahead in January could lead to 35,000 job losses, and hit economic growth. | Another campaign group, FairFuelUK, claims that allowing the 3p tax rise to go ahead in January could lead to 35,000 job losses, and hit economic growth. |
The duty increase was originally to be introduced last August, but in June Chancellor George Osborne announced that he was postponing it for five months. | The duty increase was originally to be introduced last August, but in June Chancellor George Osborne announced that he was postponing it for five months. |
At the time Mr Osborne told the Commons the delay was being funded by what he called "larger-than-forecast savings in departmental budgets." | At the time Mr Osborne told the Commons the delay was being funded by what he called "larger-than-forecast savings in departmental budgets." |
The Treasury said fuel was currently 10p cheaper than it would have been if the earlier increases in duty had not been postponed. | The Treasury said fuel was currently 10p cheaper than it would have been if the earlier increases in duty had not been postponed. |
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