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Fuel duty will remain frozen this year, announced Chancellor of the Exchequer George Osborne in his Summer Budget this afternoon, following speculation that it would be increased.

The news was welcomed by FairFuelUK campaign co-founder Howard Cox, who said: “It is good news there is no increase in fuel duty that was predicted by many experts.”

However, he added that  “it remains perplexing that the Treasury still will not cut duty. An approach they recognised in March 2014 actually benefits the economy. We will continue to argue in Westminster that just freezing duty is preventing higher growth levels in GDP and the creation of even more jobs because the chancellor does not have the courage to cut this punitive levy.”

Long term supporter of the anti-fuel duty campaign Quentin Willson added: “Our 1.1m supporters will be somewhat happier that whilst this tax still remains the highest in the EU a freeze will help keep their high road transport costs somewhat lower than what was rumoured to be introduced in this budget.”

The Budget announcement also saw the introduction of a new roads fund, which will see road tax poured into repairing Britain’s road infrastructure.

Speaking in the House of Commons, Osborne said: “Four fifths of journeys in Britain are by road, and yet we rank behind Bolivia and in the state of our roads. We need a long-term solution if we’re going to fix Britain’s roads.”

Other measures introduced included an apprenticeship levy on large firms, which aims to encourage them to take on young workers and train them, and an increase of the minimum wage from £7.20 to £9 per hour, effective next year.

The chancellor also announced more devolved powers in Greater Manchester, which he said will boost the growth of the Northern Powerhouse. Talks are underway to introduce similar measures in Leeds, Liverpool and Sheffield, he added.

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