Osborne siezes the initiative on fuel tax

The Conservative position on fuel tax - that taxes should be lowered as fuel costs increase - makes absolute sense. High fuel taxes hurt business and the consumer and the state need to share the burden in order to reduce the economic effects.

Gordon Brown's position is rapidly coming apart. All of the focus thus far has been on the proposed 2p increase in October. But the massive increase in tax revenue from current high prices is being noticed. What I think is interesting is that Gordon Brown happily tours the world encouraging oil producers to increase output. If he genuinely believes this should happen, then it means he is prepared for the resultant reduction in tax-take, in which case he can afford to reduce fuel taxes now.

By trying to talk prices down, he is helping to make the case for Conservative policy.