Osbourne's petrol U-turn

Incredible as it my seem, the Mighty Milipede's mouthpieces are accusing chancellor George Osbourne of doing a U-turn on petrol duty!

Their bleet relates to the Consevative promise to introduce a fuel price stabiliser mechanism in their election manifesto. They accuse the government of going back on this promise.

The price of petrol has hit £1.35 a litre due to the price of crude and the increases in VAT to 20% so Osbourne - as far as I can see in an effort to keep his promise - is considering reversing Alistair Darling's increase of 1p per litre due to come in in April.

It will come as no surprise to you to know that the Milipede is not anxious to describe this 1p change as a U-turn!

The scrapping of Labour's post dated tax rise is seem as an opportunity to be shown willing to find a working system and to allow time for the mechanics of that system to be ironed out. Business Secretary Vince Cable told reporters at Westminster that while a fuel stabiliser ‘could be made to work’ it would be difficult, ‘because what is the price around which you set the ups and downs (of the oil price)?’ He added: ‘There are real technical difficulties in operating such a system.’

Mr Osborne is determined to use his Budget on March 23 to respond to public disquiet about petrol prices.

For Labour, shadow transport secretary Maria Eagle said: "The Conservative-led government is all over the place on fuel prices. Each week ministers raise expectations of action but they've still done nothing. Warm words from George Osborne about a 1p change on fuel duty are all well and good, but families are paying 3p a litre more at the pump because of the VAT rise he chose to bring in."

Here at least is one senior Labour figure who fails to remember that it is Labour's 1p it is proposed to scrap and that Labour intended to raise VAT to 19%.

People who live in glass houses, really shouldn't throw stones...