Page last updated at 11:50 GMT, Wednesday, 27 June 2012 12:50 UK

PMQs: Fuel duty delay is sign of panic, says Labour

Prime Minister David Cameron has dismissed an accusation from Labour that the government's decision to postpone a 3p-per-litre rise in fuel duty is a sign of "panic".

At the PM's weekly question session with MPs, opposition leader Ed Miliband said the decision to defer August's rise until January was a further indication that Chancellor George Osborne's Budget was not boosting economic recovery in the UK.

"Why don't you admit it, plan A has failed?" he asked.

But Mr Cameron pointed out that the planned rise had been inherited from the previous administration.

The government was "defusing Labour's tax bombshells", he told MPs.

"It cannot be a U-turn to get rid of a Labour tax increase," the PM said.

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