Rethink fuel tax increases, Labour urges Chancellor

Labour is calling on Chancellor George Osborne to ditch the VAT increase on fuel and rethink plans for a rise in duty.

Scottish party leader Iain Gray announced the campaign yesterday, with shadow chancellor Ed Balls and shadow Scottish secretary Ann McKechin.

Mr Gray said: "Scotland's motorists have been hit particularly hard by the rising costs of fuel, and I am fully behind Labour's call to the UK government to look again at this issue."

However, SNP MSP Kenneth Gibson pointed out that Mr Balls had been a special adviser to former prime minister Gordon Brown when the rate of fuel duty was increased "well above inflation".

He said: "The SNP has a track record of fighting for fair fuel prices. Labour has a track record of increasing fuel taxes. There is a massive faultline between the SNP and Labour on this issue."