CHANCELLOR Gordon Brown’s decision to freeze fuel duty for another six months and put no increase on excise duty for smaller cars has been welcomed by the RAC Foundation.

The Foundation believes the decisions will help the Government regain the confidence of motorists who already pay £42bn on motoring taxes. Low-income drivers spend around 24 per cent of their household earnings on motoring.

Edmund King, executive director of the RAC Foundation, said: "The Chancellor has shown prudence at the pumps.

"Fuel duty is a regressive tax which hits those hardest who can least afford it. The Chancellor has already benefited from increased VAT receipts due to the higher cost of fuel.

"The Chancellor has been shrewd as well as prudent this Budget. He obviously is aware of the voting power of 32million motorists around the country."