Gordon Brown brushed off Tory accusations that he was running scared ahead of next week's Glasgow East by-election today after the Treasury announced that it was scrapping a 2p rise in fuel duty due to come into effect in the autumn.

The move had been flagged by both Mr Brown and Alistair Darling, the Chancellor, but was finally confirmed only a few minutes after official figures showed that the jobless rate was climbing at the fastest pace for more than 15 years.

The Chancellor announced at the last Budget that he was deferring the 2p rise until October 1. Today's decision means that it will not now come into effect until April, at the earliest.

Mr Darling explained that the move was designed to protect motorists from the effects of record oil prices. "The global credit crunch and sharp rises in world oil prices have pushed up prices at the pump," he said. "Today’s decision will help motorists and businesses get through what is a difficult time for everyone."

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Today's decision was easy and pain-free for Mr Darling. He has a lot harder ones ahead

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But the Conservatives accused the Government of another policy U-turn and predicted that deeply unpopular plans to increase vehicle excise duty on family cars built since 2001 would be the next to go.

Asked at Prime Minister's Questions whether the move had been prompted by next week's Glasgow East by-election, where Labour is coming under pressure from the Scottish Nationalist Party, Mr Brown insisted: “It is right to announce, as we have done previously, our decision before the House rises.”

David Cameron, the Tory leader, replied: "So the fuel duty had nothing to do with the by-election where it is a massive issue - just as, presumably, the 10p tax U-turn had nothing to do with Crewe and Nantwich; just as the plan to call off the election had nothing to do with the polls.

“Once again you cannot be straight with people," he added: "I'm beginning to think that the only thing in Downing Street with a spine is his book on 'Courage'."

The decision to scrap the fuel duty rise came as up to 600,000 public sector workers started a 48-hour strike over pay despite Mr Darling's repeated calls for wage restraint.

In its statement, the Treasury said that main road fuel duty rates would remain at 50.35p, which it said was 17 per cent lower in real terms than in 1999. Planned increases in road fuel gases, biofuel duty rates and rebated oils rates will also be postponed.

The Treasury explained that the the decision to defer the rise in duty had been taken in response to sharp rises in world commodity prices, with the price of oil almost doubling over the past year to reach a real-terms record high of $146 a barrel.

"This has inevitably had significant knock-on effects on the price of road fuels, which the Government is committed to taking into account when considering decisions on fuel duties," it said.

"Postponing the planned increase in fuel duty is also consistent with the Government’s commitment to support the Bank of England in maintaining low inflation. Future rate decisions are a matter for the Budget."

Motoring organisations welcomed the move but called for more to be done to ease the pressure on motorists. The RAC said: "This is welcome news but it does not go far enough. We would like to see the Chancellor not just postpone future rises but actually cut fuel duty."

Peter Carroll, a Kent-based haulier who is part of the Transaction group which helped organise a number of fuel protests by lorry drivers in London this year, welcomed the 2p postponement, but with reservations.

He said: “This is good news but it does not go anywhere near giving the UK road haulage industry a level playing field to compete with foreign truckers. What’s happened today is a little like someone with a gaping wound going to hospital and merely having the blood wiped away. What we need is for the haulage industry to qualify for an essential user rebate on fuel, which would cut the price of diesel by 25p a litre.”

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