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Government to scrap fuel duty increases

Prime minister, David Cameron has announced that the government is hatching plans to help hard up motorists with further tax breaks or even subsidies on cars that are deemed to be 'really fuel efficient'. The move could also see the block on future fuel duty rises being extended.

Prime minister, David Cameron has announced that the government is hatching plans to help hard up motorists with further tax breaks or even subsidies on cars that are deemed to be 'really fuel efficient'. The move could also see the block on future fuel duty rises being extended. Mr Cameron said that the Government has 'got to do more' to provide incentives to encourage the successful adoption of the next generation of electric hybrid cars, which some observers consider to be becoming a realistic alternative to petrol and diesel fuelled vehicles.

Speaking at a local council election event in Derbyshire this week, Mr Cameron also promised to 'keep going' to cancel any further fuel duty increases. This announcement has been taken to indicate that further fuel duty increases are now off the political agenda before the next general election which is due sometime in 2015. It is thought that only a significant decrease in fuel prices could prompt a rethink in the policy. The policy shift is part of a wider raft of measures designed to tackle the spiralling cost of living in the UK, which political strategists now see as the key issue in the run up to the next election.

Figures from the Office for National Statistics due to be released this week are widely expected to show a very small growth in the economy, rather than the latest decrease in what would be Britain's first triple dip recession. The growth is so small, however, that senior Conservatives are concerned that the voting public will not notice it against a background of the rising cost of living and stagnating wages. The prime minister explained his plans: "The truth is this, when we got in, the previous government had set out a whole lot of plans for fuel duty increases. It was like a whole lot of unexploded bombs which we have had to try and defuse. We have cancelled and delayed almost all of these fuel duty increases. We even cut fuel duty on one occasion. We will keep going to try and keep those fuel duty increases off, recognising that it is the really big bills that people really care about and want help with".

With industry observers predicting that the current record levels of crude oil prices are set to continue, Mr Cameron is also planning to incentivise motorists to switch to electric vehicles (EVs). He said: "We've still got to do more to encourage really fuel efficient cars. We've got to make sure the new generation of electric, hybrid cars come through".
 

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