The Institute of Directors (IoD) has welcomed the announcement of a government U-turn regarding the proposed rise in fuel duty that was due to impact fleet providers and other UK motorists in August.

Following the chancellor George Osborne's statement that the 3p per litre increase would be postponed until at least 2013, the IoD has stated its pleasure at the declaration.

"Increasing the cost of making deliveries or of staff getting to work was only going to harm the economy, and many will be relieved that the rise has been cancelled," Simon Walker, director general of the organisation commented.

He added that the wheels of commerce in the UK will move more smoothly as a result of this action.

Originally, the chancellor announced the duty increase in his Autumn Statement last year. However, numerous groups had campaigned against the rise ever since and this latest backdown by the coalition government will be especially pleasing to lobbyists FairFuelUK, among others.

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Posted by Sarah Godfrey