You are in > manchester.com  > News > Hutton fuels Cabinet disquiet

Finance

Hutton fuels Cabinet disquiet

01/07/2008

Business secretary John Hutton is leading pressure on chancellor Alistair Darling over plans to delay an announcement on a rise in fuel duty, a newspaper reports.

Mr Darling announced in the Budget that a planned 2p rise in fuel duty would be deferred until the autumn because of current high oil prices.

He is widely expected to delay the hike again this autumn but is believed to be reluctant to announce the move before the summer recess.

This is objected to by Mr Hutton, the Independent claims, because many may believe Labour only made the move because of pressure from other parties.

"We won't get any credit if we wait until the autumn. It's bad politics to wait. If we delay, everyone else will have demanded a freeze and it will look like we have been pushed into it grudgingly," one minister told the newspaper.

Those supporting the chancellor suggest a freeze announced now would result in renewed pressure for a 2p cut in the pre-Budget report.