George Osborne
Media playback is unsupported on your device

Chancellor postpones proposed 3p rise in fuel duty

The Chancellor, George Osborne, has postponed the proposed 3p rise in fuel duty.

Mr Osborne said the decision showed that the government was on the side of hard working families.

But Labour's Ed Balls, who had called for the cancellation, described it as the fastest U-turn in history.

Meanwhile, the Governor of the Bank of England, Mervyn King, issued a new warning on the state of the economy.

Hugh Pym reports.

Go to next video: Ed Balls: 'So many u-turns'