By Daniel Hunter

Labour are set to do all they can to delay the proposed 3p-a-litre fuel duty rise that is set to come into effect this August.

MPs will debate the Budget next week, and Labour will put down an amendment seeking to put off the increase until at least January next year.

At a time where the economy is still struggling, and thus many families are still feeling a squeeze on their finances, Shadow Chancellor Ed Balls said the government should "do the right thing".

However, a Treasury source, speaking to the BBC, said the rise was a hangover from Labour's final Budget.

But Mr Balls said Chancellor George Osborne was in charge now and it was up to him to respond to the fact that economy was in recession and in need of a boost.

"He can't blame what happened two years ago," Mr Balls told BBC Radio 4's Today programme.

"A sensible chancellor takes off his ideological blinkers and does the right thing for the economy and for families."

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