Pre-Budget 2008: Fuel duty increase to offset VAT cut

Chancellor of the Exchequer Alistair Darling has announced that a fuel duty increase will offset the VAT cut to 15 per cent.

Mr Darling told MPs that he was increasing duties on fuel, alcohol and tobacco so they would remain at the price they are now.

The chancellor also that from 2010, vehicle excise duty for the more polluting cars will be up by £30, while the less polluting cars will see no increase or a cut of £30.

The VAT cut will come into effect on Monday.