Opposition Day — [15th Allotted Day] — Cost of Living — 24 Jun 2008 at 18:50

I beg to move,

That this House expresses its deep concern at the rapidly rising cost of living; recognises the pressures this places on wage-earners and pensioners, especially those on the lowest incomes; acknowledges the danger to the UK economy of entrenching inflation through excessive wage claims in response to rising prices while understanding the concern of people who find their living standards squeezed; and therefore regrets the inability of the Government to provide assistance and support to hard-pressed families because of what the OECD describes as 'excessively loose fiscal policy' pursued by this Government over the years of economic growth.

I beg to move, To leave out from "House" to the end of the Question, and to add instead thereof:

"notes the significant increases in world prices, with the oil price rising 80 per cent. and food prices up 60 per cent. in the year to May 2008; notes that the Governor of the Bank of England's letter to the Chancellor dated 16th June 2008 said that 1.1 per cent. of the 1.2 per cent. increase in inflation over recent months was due to world food and energy prices, and that the Government was right to tackle the rises with action on an international level, including urgently looking for a successful conclusion to the Doha round of negotiations in the World Trade Organisation and examining the impact of biofuels on food production; supports the Government's global leadership on these issues; recognises the pressure that these increases in world prices put on family budgets; further notes the measures that the Government will continue to take to support families and individuals, including pensioners and businesses, throughout the UK, including through extra tax credits, increased tax allowances, winter fuel payments and increases in child benefit; further notes that the most important support for working families is a strong and stable economy; and supports the Government's actions that have delivered unemployment, inflation and interest rates all at historically low levels, helping millions of families into stable home-ownership and sustainable employment."

Question put, That the original words stand part of the Question:-

The House divided: Ayes 189, Noes 297.

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