The Chancellor has announced the planned 2p fuel tax rise has been postponed. But I’m unclear about the statement:
As a result of the decision, fuel duty will remain at 50.35p per litre from October 2008. The Treasury said this was 17% lower in real terms than in 1999.
I think it means that 50.35p in 1999 was worth 17% more than it is now – which seems a bit of a strange argument to make when you want to persuade people that you’re in control of the economy. Or have I misunderstood what Darling was saying?