Over the past couple of days it seems like our blog has been the bearer of bad or depressing news. With events over the world conspiring to push prices up and generally worsen things for the UK we are glad today that we can bring some slightly good news. Now before you go thinking that we are about to announce something huge don't get to excited.
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Speculation is rife that the Chancellor George Osborne is feeling the pressure to take firm and decisive action against the rise in fuel prices. As prices seem to be rising daily and there are so many uncertain events in the world Mr Osborne is feeling the pressure to hold back on any duty rise.
The budget which is set to be announced to the house next week was supposed to include a 1p increase in duty. It is now thought however that this pressure will force the Chancellor hold back on pushing the duty rise through. Unfortunately this won't reduce the price at the pump it will just hold it back for a small period.
A survey conducted by ComRes showed that 80% of people thought that holding off the 1p rise in duty would not be enough for the UK people. There have been strong calls from the Labour party member Ed Balls to roll back the VAT rise on petrol. If the VAT was pulled back to before the last set rise petrol would fall by approximately 2.7p. However any reduction would not be welcome by the government as it would essentially strip 700 million out of their coffers.
A 2.7p drop would be good for UK business and would cut the rising cost of fuel to Haulliers especially. We feel that there will be some heated debate over the next few weeks in the House of Commons. However cutting duty would not directly affect the pumps, forecourts may hold the price at its current level instead of dropping it back then increasing as prices rise.
The budget is set for Wednesday 23rd March so it is getting very close to decision time for the Chancellor and his team. The world and the global markets will be watching with great interest next Wednesday as concerns grow about the condition of the economy.
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