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Fuel duty increase vote by MPs due in Commons Fuel duty increase vote by MPs due in Commons
(about 2 hours later)
  
MPs are preparing to vote later on plans to increase fuel duty by 3p a litre in January. MPs are preparing to vote later on plans to increase fuel duty by 3 pence a litre in January.
Labour, which wants the rise to be postponed until at least April, has said "it would be wrong" for the measure to go ahead. Labour wants to delay the rise until at least April, saying "it would be wrong" for the measure to take effect sooner.
The Treasury said fuel was "now 10p a litre lower than under the previous government's plans". Conservative MPs concerned about the cost of petrol said they believed Chancellor George Osborne was "in listening mode" over the issue.
The Treasury said fuel was "now 10 pence a litre lower than under the previous government's plans".
Consumer organisation Which? said 85% of people it surveyed had expressed concerns about rising fuel prices.Consumer organisation Which? said 85% of people it surveyed had expressed concerns about rising fuel prices.
Pollsters Populus interviewed 2,100 UK adults on behalf of Which? online between October 26 and 28.Pollsters Populus interviewed 2,100 UK adults on behalf of Which? online between October 26 and 28.
'Worry''Worry'
The survey suggested 39% of people would cut back on motoring costs, while one in 10 said they had used savings to cover motoring costs.The survey suggested 39% of people would cut back on motoring costs, while one in 10 said they had used savings to cover motoring costs.
Which? also said the figures showed 8.7 million households curbed their spending on essentials last month, while 6.4 million households used savings to cover outgoings.Which? also said the figures showed 8.7 million households curbed their spending on essentials last month, while 6.4 million households used savings to cover outgoings.
The organisation's executive director Richard Lloyd said: "Rising fuel prices are the number one consumer worry and people are already telling us they're having to cut back and dip into savings just to get by.The organisation's executive director Richard Lloyd said: "Rising fuel prices are the number one consumer worry and people are already telling us they're having to cut back and dip into savings just to get by.
"On the back of inflation-busting energy bill rises and increasing food prices, consumers can little afford another hit on their household budget. We're calling on the government to think again about their plans to increase fuel duty in January."On the back of inflation-busting energy bill rises and increasing food prices, consumers can little afford another hit on their household budget. We're calling on the government to think again about their plans to increase fuel duty in January.
"The forthcoming Autumn Statement must focus on measures that will help put money back in the pockets of consumers, because the economic recovery is at risk if we don't increase consumer confidence.""The forthcoming Autumn Statement must focus on measures that will help put money back in the pockets of consumers, because the economic recovery is at risk if we don't increase consumer confidence."
Labour will use an opposition debate on the cost of living later on Monday to urge a delay in the 3p rise until April 2013 at the earliest. Labour will use an opposition debate on the cost of living to argue the 3p rise would stretch already hard-pressed families and businesses and would be wrong at a time when the economic recovery was still fragile.
Rachel Reeves - the shadow chief secretary to the Treasury - said that, with the UK economy "so fragile and prices still rising faster than wages", it would be "wrong to go ahead with another tax rise on families and businesses". "To boost our flatlining economy Labour has already called for a temporary VAT cut which would take 3p off a litre of fuel," shadow chief secretary to the Treasury Rachel Reeves said.
She said: "To boost our flatlining economy Labour has already called for a temporary VAT cut which would take 3p off a litre of fuel. But if ministers won't do this the very least they could do is axe January's fuel duty rise at least until April. "But if ministers won't do this the very least they could do is axe January's fuel duty rise at least until April."
"Next year the government plans to hit people on middle and low incomes with a fuel duty rise, cuts in child benefit and the granny tax while giving 8,000 millionaires a tax cut. That's out of touch and completely unfair."
'Listening mode''Listening mode'
She urged "MPs from all parties" to vote with Labour MPs to give some much needed relief to millions of motorists. Labour is urging MPs from other parties - including Conservatives - to vote with it and ignore what it claims are "nods and winks" from the Treasury that a further delay may be in the offing.
But Conservative MP Robert Halfon, who has led the campaign against increasing fuel duty, said he would not vote with Labour until he had seen what Chancellor George Osborne does in next month's Autumn Statement. But Conservative MP Robert Halfon, who has led the campaign against increasing fuel duty, said he would not vote with Labour until he sees what Mr Osborne does in next month's Autumn Statement - when he will update MPs about the state of the economy.
"The cost of fuel is the number one issue. That's why I am campaigning on it," he said. "I have had discussions with various people and it is my view that the government is in strong listening mode."The cost of fuel is the number one issue. That's why I am campaigning on it," he said. "I have had discussions with various people and it is my view that the government is in strong listening mode.
"If I didn't believe that I would make a point and go in to the lobby with Labour.""If I didn't believe that I would make a point and go in to the lobby with Labour."
The duty increase was originally to be introduced last August, but in June Mr Osborne announced that he was postponing it for five months. If Labour won Monday's vote it would not be binding on ministers but a defeat would be embarrassing for the government.
At the time he told the Commons the delay was being funded by what he called "larger-than-forecast savings in departmental budgets". The duty increase was originally to be introduced last August, but in June Mr Osborne announced that he was postponing it for five months, saying was being funded by what he called "larger-than-forecast savings in departmental budgets".
A Treasury spokesman said: "The government recognises that the rising price of petrol is a significant part of households' day-to-day spending. Asked about the prospect of a further delay, the prime minister's spokesman said tax decisions were a matter for the chancellor.
"Since coming to office the government has listened to the concerns of motorists about high pump prices and acted. Fuel is now 10p a litre lower than under the previous government's plans." "The government obviously recognises that the cost of petrol is a significant part of day-to-day spending and that is why the government has listened to the views of consumers and motorists and acted over the past two years by delaying or cancelling planned rises," he said.
The prime minister's spokesman said planned duty rises would "generate revenue which will help bring the deficit down", adding: "But what the government has sought to do thus far is listen to the concerns of motorists and, where it can, delay or cancel those planned rises." A Treasury spokesman added: "Since coming to office the government has listened to the concerns of motorists about high pump prices and acted."
He said: "Decisions on tax and duties are a matter for the chancellor. The government obviously recognises that the cost of petrol is a significant part of day-to-day spending and that is why the government has listened to the views of consumers and motorists and acted over the past two years by delaying or cancelling planned rises."