Darling to revisit fuel tax plans

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Alistair Darling has promised to revisit a planned increase in fuel tax - and has ignored the Labour rebels' demands for a U-turn.

The Chancellor insisted green incentives in vehicle excise duty were essential, and defended his plans to increase tax on "gas-guzzling" cars.

However, Mr Darling has indicated that he would look at a 2p rise in fuel tax closer to its planned introduction in October as petrol and diesel prices become a more pressing consideration.

His comments come amid confusion among ministers over vehicle excise duty reform, after Business Secretary John Hutton and Justice Secretary Jack Straw gave hope to Labour rebels. But Downing Street insisted that they had only been saying that the Government understood concerns.

Mr Darling said: "I believe it is right we should encourage people to use less polluting cars."

He maintained that the majority of people would pay less or the same in real terms, despite claims that up to 18 million people would be affected by the changes.

He went on: "I've made this clear before - I intend to come back to the issue of the fuel tax increase that will be due this October. I'm very conscious of the fact that people are concerned about the amount of money they are now having to pay out."

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