Gordon Brown has defended a decision to postpone a 2p rise in fuel duty after David Cameron suggested it was timed to coincide with next week's by-election.

The increase has been put off from October until at least next March, In the Commons, the Tory leader asked if this had "anything to do with the Glasgow East by-election".

But the prime minister said the move, coming just before MPs' summer break and amid rising oil prices, would help people facing high food and fuel bills.

Pressure

The increase in fuel duty - originally planned for last March - had already been postponed until this October, But the government says it will now not make any changes until the Budget next March at the earliest.

The price of unleaded petrol has risen 25% over the past year and pressure has been mounting for duty to be cut.

The announcement of a further delay to the planned rise was made by Chancellor Alistair Darling ahead of a Conservative-called debate on fuel duty now taking place in the Commons.

At prime minister's question time, Mr Cameron said: "The government announced today that after months of dithering it is scrapping the 2p tax rise on fuel, Can you tell us whether this decision had anything to do with the Glasgow East by-election?"

Mr Brown replied: "It is right to announce, as we have done previously, a decision before the House rises (for the summer break)."

He said the government would "continue to help hard-pressed families who are facing high fuel bills and high food prices because of what is happening in every country in the world....

"And in recognition of the problems that people face with petrol, we are freezing the duty of petrol for the full year. And we will bring forward further measures to help families in due course."

'Winter of discontent'

The prime minister's spokesman said there were "lots of precedents" for announcements on fuel duty to be made before the parliamentary summer recess.

He said Mr Darling had "decided to do it now because he wanted to end any uncertainty".

But Liberal Democrat leader Nick Clegg warned a "winter of discontent" was "just around the corner" with jobs at risk and families coping with rising food and energy prices.

"You promised to abolish boom and bust. But now we've got both - inflation's booming, the economy's bust," he told the prime minister.

Mr Brown said employment was at its "highest level ever" according to labour force statistics published on Wednesday and inflation was lower than the rest of Europe and the US.

"We are taking action to help people through these difficult circumstances," he said and urged Mr Clegg to "see the economy in its proper context".

But Lib Dem Treasury spokesman Vincent Cable said: "There's absolutely no reason why the chancellor should have been stampeded into making this decision and we have no indication how it's going to be paid for."

The Institute for Fiscal Studies estimates the latest fuel duty decision leaves the Exchequer £550m worse off, and brings the total cost of freezing it this year to £1.1bn.

The decision to postpone the rise was disclosed in a response to a parliamentary question tabled by a Labour backbencher.

Budget consideration

Mr Darling told the BBC News Channel it was clear that oil prices were going to remain "high for some time yet"

"So I've reached the view that it's right now, before the House of Commons goes away for the summer recess, to say that we're going to postpone the increase that was due in October," he said.

"I'll look again at the matter again in the budget but I think that this is the right thing to do to help motorists and to help businesses."

The decision follows a series of demonstrations by lorry drivers demanding cheaper diesel. Figures show petrol prices have risen nearly a quarter during the past year, and diesel 36%.

AA figures suggest the cost of a litre of unleaded petrol averaged 119.5p across the UK on Tuesday, with diesel averaging out at 133p.

Fuel duty increases have been postponed a number of times over recent years when oil prices have been high.

bbc.co.uk