text_body: --- DIVISION TITLE ---
  
  Fuel Duty - Balance against oil prices - rejected
  
  --- MOTION EFFECT ---
  
  The majority of MPs voted against the motion, which read:[1]
  
  **This House 
  * ''notes'' that oil prices are now almost $150 per barrel; 
  * ''further notes'' that diesel in the UK is the most expensive in Europe; acknowledges the sharp rises in fuel prices over the past year and the resulting impact on headline inflation figures; 
  * ''recognises'' the financial pressure this places on hard-pressed families already struggling with soaring food and housing costs; 
  * ''condemns'' the Government's continued dithering over the implementation of the two pence increase in fuel duty, planned for the autumn, as neither a sustainable nor a stable way to make tax policy; 
  * ''further notes'' that a balancing mechanism to adjust fuel duty in line with changes in the price of oil would have reduced the current price of petrol by five pence per litre since March 2008; and 
  * ''calls'' upon the Government to consider the implementation of such a balancing mechanism to ensure that the burden of rising oil prices is shared fairly between government and families, the sensitivity of the public finances to changing oil prices is reduced and the cost of carbon can be stabilised to send consistent environmental signals.
  
  In its place the an alternative motion was proposed and passed without a further vote:[2]
  
  ** This House
  * ''recognises'' the pressure that the increase in fuel prices, caused by pressures from the international oil market, has put on business and families; 
  * ''welcomes'' the Chancellor's decision to defer the planned two pence per litre increase in fuel duty that was due to take place in April 2008; 
  * ''notes'' that while fuel prices have increased by over 20 per cent. since last October, fuel duty has stayed constant; 
  * ''also notes'' that had the escalator introduced in 1993 been in place since 1999, fuel duty would now be 29 pence per litre higher; 
  * ''supports'' the Government's global leadership on this issue, in particular at the recent [http://uk.reuters.com/article/oilRpt/idUKL2270998520080622 Jeddah Energy Meeting], and welcomes the Government's intention to host a follow up to this meeting in London later this year; 
  * ''further recognises'' that the Government does not receive a significant windfall when oil prices rise, because any additional revenues from the North Sea are likely to be offset by other effects; and 
  * therefore ''further notes'' that a system which would automatically cut fuel duty when oil prices rise would be destabilising, creating volatility for the public finances and uncertainty for the financing of public services, and would create considerable pressure for tax increases elsewhere.
  
  * [1] [http://www.theyworkforyou.com/debates/?id=2008-07-16a.316.0 Philip Hammond MP speech], House of Commons, 16 July 2008
  * [2] [http://www.theyworkforyou.com/debates/?id=2008-07-16a.316.0#g325.2 Yvette Cooper MP speech], House of Commons, 16 July 2008
  
  
  --- COMMENTS AND NOTES ---
  
  (put thoughts and notes for other researchers here)
  