Balls: 'Osborne should have cut VAT on petrol'

Shadow chancellor Ed Balls has said chancellor George Osborne should have reversed January's 3% increase in VAT on fuel instead of cutting fuel duty in Wednesday's Budget.

Delivering the Budget amid a surge in oil prices, the chancellor cut fuel duty by 1p per litre, cancelled the introduction of a fuel duty escalator and delayed other planned duty rises.

Mr Balls also warned the new windfall tax on North Sea oil producers, which Mr Osborne claims will raise £2bn, could result in oil firms trying to recoup this by raising pump prices.