Budget 2011: help for firms and motorists on fuel

As widely expected, the Chancellor opted to cancel the planned increase in fuel duty.

He cited the impact of soaring oil prices on both firms and individual motorists.

Not only that, Mr Osborne introduced a 1p cut in fuel duty as from 1800GMT 23 March. And the fuel duty escalator, which would have added 1p per year above inflation, has been dropped until 2015 unless oil prices tumble in the intervening period.

Rates of vehicle excise duty will increase by inflation only, while the rates for heavy good vehicles will be frozen.

The mileage rate for the Approved Mileage Allowance Payments for cars is to go up from 40 pence per mile to 45 pence per mile.