Budget 2011 as it happened

  • 1p increase in fuel duty rise delayed until 2012
  • Fair fuel stabiliser introduced
  • Road tax increased by rate of inflation

The Budget - as it happened:

12:34 - Chancellor, George Osborne: "Budget is about reforming the economy and helping families with the cost of living and oil prices."

12:35

Osborne claims this latest Budget is "Not a tax raising Budget" and goes on to have a dig at the previous government saying that it is about "making things, not making things up"

12:40

Osborne says that the price of oil has gone up by 35% in the past five months.

12:47

The government is set to consult on merging national insurance and income tax.

13:03

Government will find an extra £100 million to help councils repair pot holes caused by the winter weather.

13:13

Very brief mention of some support for eco cars, but no details. Will have to wait for the full report to see what this is.

13:22

Mileage allowance will be increased from 40p to 45p per mile. This will also include any volunteers that travel as passengers.

13:24

Vehicle Excise Duty (VED) will go up by inflation only which is 4.4%.

13:25

Now on to fuel duty. Osborne says that the "Price of petrol is a huge burden on families."

So far three out of a planned seven fuel duty rises have happened adding around 3p per litre to the price of fuel. If the latest went ahead it would have put 5p extra on the price of fuel.

13:28

A fair fuel stabiliser will be introduced, while the fuel duty rise set to happen in April will be delayed until January 2012. The planned 2012 rise will then be implemented in August 2012. The ongoing fuel duty escalator introduced by the previous government will be cancelled for now, although it could be re-introduced when the price of oil drops.

Fuel duty will be cut by 1p per litre at 6pm tonight, while Osborne says there will be no duty rise this year.

13:30

Osborne finishes the Budget claiming the coalition has "put fuel into the tank of the British economy."

Budget ends