It will increase the pressure to introduce a fuel price regulator and take action to tackle fuel poverty, according to SNP candidate John Mason. “Alistair Darling's U-turn is the first victory of the Glasgow-East by-election for the SNP and Scotland

“If this is what pressure from the SNP during a by-election can deliver, just think what can be achieved with an SNP victory in Glasgow East. This step is welcome but not enough; as SNP MP for Glasgow East I will be demanding the introduction of a fuel price regulator, and action on soaring energy bills.”

The Scottish Chambers of Commerce welcomed the Chancellor’s decision: “The only thing he could have done better was to cancel it altogether, and I hope he sees the wisdom of that option soon,” said chief executive Liz Cameron.

“We are delighted he has listened to persistent lobbying from Chambers of Commerce, from the haulage industry, from public transport and from the wider business community. The government has other simple remedies at its fingertips for the present market pressures on the economy. Swift and decisive action is needed to restore confidence at this time.

“Forgoing a further increase in fuel costs for consumers, when his pockets are bulging from a vastly increased tax take from the meteoric rise in world fuel prices was the most sensible move we could see.  Let's hope there are more on the way.”

NFU Scotland (NFUS) gave a lukewarm reaction to the announcement: “We all know that the most significant cause of recent fuel price rises has been the soaring price of oil on world markets.  Nevertheless, we are all also aware of the increasing revenue to HM Treasury from fuel and North Sea oil taxation,” said Stewart Wood, NFUS vice-president.

“In these unprecedented times, the UK Government must act to alleviate the fuel tax burden facing the farming and food industry and everyone who lives and works in rural areas.   If the Treasury is to make a meaningful gesture, it must cut fuel tax duty rather than simply postponing planned increases.   It has it within its gift to alleviate the pressure on every household, particularly rural ones for whom alternative transport is not an option. But simply delaying a two pence per litre duty rise is not enough.

“Despite this week’s inflation figures, there remains a lack of recognition within the UK Government of the extent to which the fuel price issue impacts upon the cost of food production. Food prices are historically low, but they are now rising and the cost of fuel is a contributing factor to this trend.

“If UK Government wanted to provide farmers with a clear steer on its intentions for food production in this country, then providing farmers with a full rebate on red diesel would put us on a level playing field with our counterparts in the fishing industry and help to manage the cost of food production.

“A fuel price regulator would also provide a mechanism to address unexpected peaks in oil prices.  In addition, using EU legislation to reduce duty in more remote areas would be significant to individuals but come at very little cost to the Exchequer due to the low volumes involved.”