Cut the tax on beer, petrol and flying, Osborne is warned as Tories demand action on rising cost of living Chancellor to deliver Budget on March 20, amid calls for more to ease pressure on family budgets Conservative MPs want cuts to tax on beer, fuel and flights Treasury has little room for manoeuvre after Britain lost AAA rating George Osborne held a lengthy meeting with Tory MPs ahead of the Budget on March 20 George Osborne is coming under pressure from Tory MPs to cut fuel, food and energy bills to help ease the cost of living for voters. The Chancellor last night faced calls to do more to cut taxes and go further in removing red-tape for business in next month's Budget. Conservative MPs have grown increasingly anxious about the voter reaction to the state of the economy, and the impact on household budgets. Days after the British economy lost its coveted AAA rating, Mr Osborne is understood to have made clear to a meeting of Tory MPs that the pace of spending cuts would not be eased. But he faced a string of calls to announce tax cuts on March 20 to boost growth, including reductions in duty on alcohol, petrol and air flights. Efforts by ministers to act to reduce living costs have suffered a major blow after more than 40 per cent of town halls refused to bow to pressure from Whitehall to freeze council tax. Local government minister Brandon Lewis declared this week: "All councils have a moral duty to freeze council tax at a time when the standard and cost of living for our hard-working residents are tough." But figures compiled by the Chartered Institute of Public Finance and Accountancy show two in five councils will shun Communities Secretary Eric Pickles" offer of the cash equivalent of a 1 per cent rise in grants return for keeping their rates to local taxpayers the same. Mr Osborne also needs to avoid a repeat of last year's omnishambles Budget, when planned tax rises on pasties, caravans and giving to charity sparked a huge backlash and forced a string of u-turns. At last night's meeting of around 50 Tory MPs he was presented with a raft of demands for tax cuts. Robert Halfon, MP for Harlow, was among three MPs who stepped up calls for action to reduce fuel duty, including acing the rise planned for this September. Dozens of Tory MPs have backed a motion criticising the beer duty escalator which will rise by two per cent above inflation. Tax on booze has risen by 42 per cent since 2008, sparking warnings that it is leading to the closure of pubs across the country. Winchester MP Steve Brine put forward the idea of introducing regional air passenger duty, making it cheaper to fly from airports outside London. He believes the plan could provide a boost to regional economies, without significantly harming the capital. Using 2005 as a baseline, the Consumer Prices Index rate of inflation has risen markedly, according to figures from the Office for National Statistics Living costs: Tory MPs are demanding cuts to tax on beer and fuel to ease pressure on family budgets One Tory MP said today: "We need to focus on where we can make a difference to people's lives. Although George has cut red tape and pushed regulation back he has not gone far enough. It is business which will take us out of recession. David Cameron yesterday declared the deficit must be cut "further and faster" to get the economy back on track and regain Britain's AAA credit rating. He fended off criticism over the loss of AAA status, signalling he wants deeper cuts to get the public finances back on track.