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19 March 2014 | Gurjit Degun
The government is to set up a £7 billion package to cut energy bills for British manufacturers, chancellor George Osborne announced in the Budget today.
“US industrial energy prices are half those in Britain,” he told the House of Commons. “We need to cut our energy costs. We are going to have a £7 billion package to cut energy bills for British manufacturers – with benefits for families and other businesses too.”
Osborne explained the government needs to support manufacturers if it is to see more economic growth “in the regions”.
Fuel duty has been frozen again, as the chancellor confirmed that the planned rise in September will not take place. “Petrol will be 20 pence lower per litre than it would have been,” he said.
The government is also reforming air passenger duty “to end the crazy system where you pay less tax travelling to Hawaii than you do travelling to China or India”.
Osborne said from next year all long haul flights will carry the same, lower, band B tax rate that is paid when flying to the US. He also revealed the government will provide start-up support for new routes from regional airports.