Agenda item

8.1

It was moved by Councillor Mike Levery, and seconded by Councillor Andrew Sangar, that this Council:-

notes that:-

(a)      Sheffield City Council is currently projected to be £34 million over budget by the end of this financial year;

(b)      according to the Local Government Association, one in four councils will need to apply for exceptional financial support in the next two years, without additional funding;

(c)      a recent report from the National Audit Office described the current Special Educational Needs (SEN) system as “not achieving value for money and is unsustainable”;

(d)      the Prime Minister has announced that the single bus fare cap will rise to £3 when the existing cap of £2 expires at the end of 2024;

(e)      in Sheffield, the Education, Children and Families Policy Committee General Fund is currently overspent by £14.1million;

(f)       according to research from the Health Foundation, real-terms social care spending per person will be at least 5% lower in 2024/25 than it was in 2009/10;

(g)      in Sheffield, the Adult Health and Social Care Policy Committee is currently overspent by £9million;

(h)      in 2023/24, Sheffield City Council incurred a loss of £4.9million as a result of legislation relating to supported accommodation and the lack of Government funding to fully subsidise housing for those experiencing temporary homelessness;

(i)       this financial year, the Council is expected to lose out on £7.1million due to this legislation;

(j)       also in this financial year, homelessness support in temporary and exempt accommodation is forecast to cost the Council £12.6 million;

believes that:-

(k)      without additional funding, local government provision will continue to decline;

(l)       without additional funding, more local authorities will be forced to issue Section 114 notices, effectively declaring bankruptcy;

(m)     local authorities require sufficient and sustainable funding in order to meet growing demand for services that our communities rely on every day;

(n)      Sheffield City Council faces serious financial challenges in the coming months and years; and

(o)      the burden of fixing the country’s economy should fall on the broadest shoulders including big banks, social media companies and oil and gas giants rather than hard working households.

8.2

Whereupon, it was moved by Councillor Zahira Naz, and seconded by Councillor Elle Dodd, as an amendment, that the Motion now submitted be amended by the addition of new paragraphs (p) to (y) as follows:-

This Council:-

(p)      believes challenges facing local government are caused by systemic under-funding by governments since 2010, by high inflation, and rising demand for services;

(q)      notes since the original motion was published the Government has delivered a Budget to provide more support for councils, and with poorest households gaining the most;

(r)       notes the Budget provides a pay rise for over 3 million workers who receive the National Living Wage, and increases the state pension by up to £470;

(s)      supports councils getting 100% of Right To Buy receipts and new funding for the NHS to deliver an extra two million operations, scans and appointments a year;

(t)       supports the extension to the Household Support Fund to help those in hardship;

(u)      welcomes the biggest increase in Carer’s Allowance eligibility since its introduction;

(v)      welcomes additional support for local government, social care and for tackling homelessness;

(w)      supports new investment for rebuilding schools, new affordable housing and investment in clean energy;

(x)      commits to ensuring that every pound of public money is spent wisely and to always manage our budget prudently and responsibly; and

(y)      commits to work cross-party over the coming months to prepare a balanced budget for 2025/26.

8.3

It was then moved by Councillor Douglas Johnson, and seconded by Councillor Marieanne Elliot, as an amendment, that the Motion now submitted be amended by the addition of new paragraphs (p) to (r) as follows:-

(p)      in order to do this, rather than taxing employment, the Government should have taxed wealth at 1% on assets over £10 million and 2% on assets over £1 billion to raise £50-70 billion to help support valued public services;

(q)      while welcoming the small reduction in Right to Buy discounts and allowing councils to keep more of the proceeds of house sales, abolishing the right to buy council housing altogether would have provided better protection for our overstretched housing stock; and

(r)       the Government has disappointed local authority signatories to the Future of Council Housing report, which include this Council, by failing to meet the gap of £644m equal to income lost due to the 2023-25 rent cap.

8.4

It was then formally moved by Councillor Joe Otten, and formally seconded by Councillor Sue Alston, as an amendment, that the Motion now submitted be amended by:-

1.       the addition of a new paragraph (g) as follows, and the re-lettering of the original paragraphs (g) to (j) as new paragraphs (h) to (k):-

(g)      Care England, a representative body for care providers, has warned the rise in employers’ National Insurance Contributions (NICs) announced at the Autumn Budget risks creating a £2 billion hole in the sector;

2.       the addition of a new paragraph (l) as follows:-

(l)       at the Autumn Budget, Local Housing Allowance rates were frozen despite private rent increases by an average of 8.4% in the last year;

3.       the re-lettering of the original paragraphs (k) to (o) as new paragraphs (m) to (q);

4.       the addition of new paragraphs (r) and (s) as follows:-

          resolves to:-

(r)       write to the Deputy Prime Minister:-

(i)       advocating for clear funding pathways for care providers who cannot afford the rise in employer NICs; and

(ii)       calling on the Government to properly fund the increased costs that Local Authorities will be subject to resulting from the National Living Wage and employers' NICs increases; and

(s)      ask the Leader of the Council to forward this motion to the Deputy Prime Minister.

8.5

After contributions from two other Members, and following a right of reply from Councillor Mike Levery, the amendment moved by Councillor Zahira Naz was put to the vote and was carried, except for paragraph (q) of the amendment, which was lost.

8.5.1

(NOTE: The result of the vote was FOR - 74 Members; AGAINST - 0 Members; ABSTENTIONS – 1 Member.  Although Liberal Democrat Group Members voted for, they voted against paragraphs (p) and (q) of the amendment. Although Green Group Members voted for, they voted against paragraph (q) of the amendment. Although Sheffield Community Councillors Group Members voted for, they voted against paragraphs (p) to (s), (v) and (x) of the amendment.)

8.6

The amendment moved by Councillor Douglas Johnson was then put to the vote and was lost, except for paragraph (r) of the amendment, which was carried.

8.6.1

(NOTE: The result of the vote was FOR - 17 Members; AGAINST - 33 Members; ABSTENTIONS – 25 Members.  Although Liberal Democrat Group Members abstained, they voted against paragraph (p) and for paragraph (r) of the amendment.)

8.7

The amendment moved by Councillor Joe Otten was then put to the vote and was carried.

8.7.1

(NOTE: The result of the vote was FOR - 41 Members; AGAINST - 34 Members; ABSTENTIONS – 1 Member.)

8.8

The original Motion, as amended, was then put to the vote as a Substantive Motion in the following form and was carried:-

RESOLVED:  That this Council:-

notes that:-

(a)      Sheffield City Council is currently projected to be £34 million over budget by the end of this financial year;

(b)      according to the Local Government Association, one in four councils will need to apply for exceptional financial support in the next two years, without additional funding;

(c)      a recent report from the National Audit Office described the current Special Educational Needs (SEN) system as “not achieving value for money and is unsustainable”;

(d)      the Prime Minister has announced that the single bus fare cap will rise to £3 when the existing cap of £2 expires at the end of 2024;

(e)      in Sheffield, the Education, Children and Families Policy Committee General Fund is currently overspent by £14.1million;

(f)       according to research from the Health Foundation, real-terms social care spending per person will be at least 5% lower in 2024/25 than it was in 2009/10;

(g)      Care England, a representative body for care providers, has warned the rise in employers’ National Insurance Contributions (NICs) announced at the Autumn Budget risks creating a £2 billion hole in the sector;

(h)      in Sheffield, the Adult Health and Social Care Policy Committee is currently overspent by £9million;

(i)       in 2023/24, Sheffield City Council incurred a loss of £4.9million as a result of legislation relating to supported accommodation and the lack of Government funding to fully subsidise housing for those experiencing temporary homelessness;

(j)       this financial year, the Council is expected to lose out on £7.1million due to this legislation;

(k)      also in this financial year, homelessness support in temporary and exempt accommodation is forecast to cost the Council £12.6 million;

(l)       at the Autumn Budget, Local Housing Allowance rates were frozen despite private rent increases by an average of 8.4% in the last year;

believes that:-

(m)     without additional funding, local government provision will continue to decline;

(n)      without additional funding, more local authorities will be forced to issue Section 114 notices, effectively declaring bankruptcy;

(o)      local authorities require sufficient and sustainable funding in order to meet growing demand for services that our communities rely on every day;

(p)      Sheffield City Council faces serious financial challenges in the coming months and years;

(q)      the burden of fixing the country’s economy should fall on the broadest shoulders including big banks, social media companies and oil and gas giants rather than hard working households;

(r)       the Government has disappointed local authority signatories to the Future of Council Housing report, which include this Council, by failing to meet the gap of £644m equal to income lost due to the 2023-25 rent cap;

this Council:-

(s)      believes challenges facing local government are caused by systemic under-funding by governments since 2010, by high inflation, and rising demand for services;

(t)       notes the Budget provides a pay rise for over 3 million workers who receive the National Living Wage, and increases the state pension by up to £470;

(u)      supports councils getting 100% of Right To Buy receipts and new funding for the NHS to deliver an extra two million operations, scans and appointments a year;

(v)      supports the extension to the Household Support Fund to help those in hardship;

(w)      welcomes the biggest increase in Carer’s Allowance eligibility since its introduction;

(x)      welcomes additional support for local government, social care and for tackling homelessness;

(y)      supports new investment for rebuilding schools, new affordable housing and investment in clean energy;

(z)      commits to ensuring that every pound of public money is spent wisely and to always manage our budget prudently and responsibly;

(aa)    commits to work cross-party over the coming months to prepare a balanced budget for 2025/26;

resolves to:-

(bb)    write to the Deputy Prime Minister:-

(i)       advocating for clear funding pathways for care providers who cannot afford the rise in employer NICs; and

(ii)       calling on the Government to properly fund the increased costs that Local Authorities will be subject to resulting from the National Living Wage and employers' NICs increases; and

(cc)     ask the Leader of the Council to forward this motion to the Deputy Prime Minister.

8.8.1

(NOTE: The result of the vote on the Substantive Motion was FOR - 40 Members; AGAINST - 0 Members; ABSTENTIONS – 35 Members.  Although Labour Group Members abstained, they voted for paragraphs (s) to (aa) and against paragraphs (g), (l), (r), (bb) and (cc) of the Substantive Motion. Although Liberal Democrat Group Members voted for, they voted against paragraph (s) of the Substantive Motion. Although Sheffield Community Councillors Group Members voted for, they voted against paragraphs (s), (t), (u), (x) and (z) of the Substantive Motion.)