CHANCELLOR of the Exchequer Gordon Brown abolished the annual pre-set fuel duty escalator, currently set at 6% above inflation, in his pre-Budget report on Tuesday. Following a sustained attack by industry on the annual Budget rise in fuel duty, Brown told the House of Commons during his 35-minute statement that any increases in fuel duties would be decided 'Budget-by-Budget'.

However, in the March 2000 Budget he intimated there may be no increase above inflation in fuel duties saying: 'If there are any real term rises in road fuel duties they will be lower and will go straight into a ring-fenced fund for the modernisation of roads and public transport.'