Agenda item

Notice of Motion Regarding "Cost of Living Crisis - National Failings and Our Local Response" - Given By Councillor Nabeela Mowlana and to be Seconded By Councillor Abtisam Mohamed

That this Council:-

 

(a)      notes that inflation is at over 10%, with Britain the only G7 economy where inflation has hit double digits;

 

(b)      believes that the Government’s reckless mini-budget has crashed the economy, and though the Prime Minister and Chancellor may have again changed, the damage has already been dealt;

 

(c)      notes that the unfunded tax cuts caused financial disaster – with spiralling interest on government bonds, and crashing the pound to its weakest ever position against the dollar;

 

(d)      notes that the effect of this has been soaring mortgage repayment costs, higher inflation and widespread economic turmoil, further compounding the current cost-of-living crisis;

 

(e)      notes that in response to the crisis of their own making, the Government have now reneged on plans to provide a two-year cap on the cost of energy units, and have slashed this guaranteed support to 6 months instead;

 

(f)       believes that as this Government attempt to balance the country’s finances following their complete and utter mismanagement of the economy, the burden for this must not fall on Sheffield residents or cash-strapped public services;

 

(g)      notes that the Council is already facing its worse ever budget position – caused by inflation, unprecedented energy costs and twelve preceding years of government cuts, meaning that there is now very little flexibility for the Council to make additional savings;

 

(h)      notes that Sheffield Council will have lost around £300 million from its budget, in real terms, since 2010 – around a third of the Council’s entire budget – making it even harder for the organisation to support the city’s residents during the cost-of-living crisis;

 

(i)       notes, however, that despite the financial difficulties, this Council is doing everything it can to support residents through this crisis, with the Council creating a package of support to provide all available guidance (financial, fuel, food) for anyone facing hardship;

 

(j)       notes that alongside partners in Voluntary Action Sheffield and numerous VCFS organisations, the Council has created a network of ‘Welcome Places’ which will provide convenient spaces for people to access help or just call in to get warm, have a cup of tea and a chat, in their local communities;

 

(k)      believes that Sheffield’s warm and welcoming places should harness everything great about the support that exists in the city, providing places for people to socialise, undertake activities, share advice, learn and support each other;

 

(l)       notes that the Council has formed a cost-of-living steering group, chaired by the Council Leader, and believes that as an organisation we must work on the crisis with the same resolve and collective spirit as was needed throughout the pandemic;

 

(m)     supports the Labour Party’s plan to take real action now to tackle the Government’s cost of living crisis:-

 

(i)             cut VAT on home energy bills;

 

(ii)            save on energy bills now and in the longer term by insulating millions of homes;

 

(iii)          cut small business rates and support businesses through the cost of living storm;

 

(iv)          buy, make and sell more in Britain to create well-paid, secure jobs in every community; and

 

(v)           establish a state-owned energy company – Great British Energy – charged with investing in and running green energy projects across the country, leading to clean growth and lower energy bills;

 

(n)      calls on the Government to finally provide sufficient financial support for households, businesses and local authorities to ensure that people in Sheffield get the support they need through this ongoing crisis that this Council believes is of their making; and

 

(o)      believes that whilst the Government is not providing any funding to do what is really needed to support people fully, or to provide the public services we should expect, it is important that the Council helps to lead the co-ordinated efforts across the city to support residents through this ongoing crisis.

 

 

Minutes:

8.1

It was formally moved by Councillor Nabeela Mowlana, and formally seconded by Councillor Zahira Naz, that this Council:-

 

 

 

(a)      notes that inflation is at over 10%, with Britain the only G7 economy where inflation has hit double digits;

 

 

 

(b)      believes that the Government’s reckless mini-budget has crashed the economy, and though the Prime Minister and Chancellor may have again changed, the damage has already been dealt;

 

 

 

(c)      notes that the unfunded tax cuts caused financial disaster – with spiralling interest on government bonds, and crashing the pound to its weakest ever position against the dollar;

 

 

 

(d)      notes that the effect of this has been soaring mortgage repayment costs, higher inflation and widespread economic turmoil, further compounding the current cost-of-living crisis;

 

 

 

(e)      notes that in response to the crisis of their own making, the Government have now reneged on plans to provide a two-year cap on the cost of energy units, and have slashed this guaranteed support to 6 months instead;

 

 

 

(f)       believes that as this Government attempt to balance the country’s finances following their complete and utter mismanagement of the economy, the burden for this must not fall on Sheffield residents or cash-strapped public services;

 

 

 

(g)      notes that the Council is already facing its worse ever budget position – caused by inflation, unprecedented energy costs and twelve preceding years of government cuts, meaning that there is now very little flexibility for the Council to make additional savings;

 

 

 

(h)      notes that Sheffield Council will have lost around £300 million from its budget, in real terms, since 2010 – around a third of the Council’s entire budget – making it even harder for the organisation to support the city’s residents during the cost-of-living crisis;

 

 

 

(i)       notes, however, that despite the financial difficulties, this Council is doing everything it can to support residents through this crisis, with the Council creating a package of support to provide all available guidance (financial, fuel, food) for anyone facing hardship;

 

 

 

(j)       notes that alongside partners in Voluntary Action Sheffield and numerous VCFS organisations, the Council has created a network of ‘Welcome Places’ which will provide convenient spaces for people to access help or just call in to get warm, have a cup of tea and a chat, in their local communities;

 

 

 

(k)      believes that Sheffield’s warm and welcoming places should harness everything great about the support that exists in the city, providing places for people to socialise, undertake activities, share advice, learn and support each other;

 

 

 

(l)       notes that the Council has formed a cost-of-living steering group, chaired by the Council Leader, and believes that as an organisation we must work on the crisis with the same resolve and collective spirit as was needed throughout the pandemic;

 

 

 

(m)     supports the Labour Party’s plan to take real action now to tackle the Government’s cost of living crisis:-

 

 

 

(i)       cut VAT on home energy bills;

 

 

 

(ii)       save on energy bills now and in the longer term by insulating millions of homes;

 

 

 

(iii)      cut small business rates and support businesses through the cost of living storm;

 

 

 

(iv)      buy, make and sell more in Britain to create well-paid, secure jobs in every community; and

 

 

 

(v)      establish a state-owned energy company – Great British Energy – charged with investing in and running green energy projects across the country, leading to clean growth and lower energy bills;

 

 

 

(n)      calls on the Government to finally provide sufficient financial support for households, businesses and local authorities to ensure that people in Sheffield get the support they need through this ongoing crisis that this Council believes is of their making; and

 

 

 

(o)      believes that whilst the Government is not providing any funding to do what is really needed to support people fully, or to provide the public services we should expect, it is important that the Council helps to lead the co-ordinated efforts across the city to support residents through this ongoing crisis.

 

 

8.2

Whereupon, it was formally moved by Councillor Joe Otten, and formally seconded by Councillor Simon Clement-Jones, as an amendment, that the Motion now submitted be amended by:-

 

 

 

1.       the addition of new paragraphs (j) and (k) as follows, and the re-lettering of original paragraphs (j) to (l) as new paragraphs (l) to (n):-

 

 

 

(j)       regrets the inclusion of £12m worth of Budget Implementation Plans that are now predicted to be undeliverable by 2023/24 within the current budget, and believes that it is of the utmost importance to improve this Council’s financial situation in order to safeguard the public services that Sheffield residents rely upon;

 

 

 

(k)      notes with concern the delays to this Council's insulation work programme on its own housing stock, which may cause our own tenants to suffer increased energy bills this year, and requests that the Strategy and Resources Policy Committee work to ensure this crucial insulation work is completed as quickly as possible;

 

 

 

2.       the deletion of original paragraph (m) and the addition of new paragraphs (o) and (p), as follows:-

 

 

 

(o)      calls on central government to tackle the cost of living crisis, which this Council believes is of their making, through:-

 

 

 

(i)       cutting the standard rate of VAT to 17.5%;

 

 

 

(ii)       restoring the Universal Credit supplement of £20;

 

 

 

(iii)      introducing Free School Meals for all families receiving Universal Credit, and providing food vouchers for these families over every school holiday, providing stability to stretched household budgets;

 

 

 

(iv)      introducing a home insulation fund to decrease heating bills and carbon emissions; and

 

 

 

(v)      funding these measures through a windfall tax on energy companies making record profits;

 

 

 

(p)      requests that the Chief Executive writes to the Secretary of State for Work and Pensions to express this Council's demands to restore the Universal Credit supplement of £20; and to the Chancellor to express this Council's demands to cut the standard rate of VAT to 17.5%;

 

 

 

3.        the re-lettering of original paragraphs (n) and (o) as new paragraphs (q) and (r).

 

 

8.3

It was then formally moved by Councillor Paul Turpin, and formally seconded by Councillor Martin Phipps, as an amendment, that the Motion now submitted be amended by:-

 

 

 

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

 

 

 

(e)      rejects any return to discredited austerity policies by the Government under the guise of “tough choices”, believing that it is a self-defeating policy which does nothing to help the UK’s finances and serves only to redistribute wealth from the poor to the rich;

 

 

 

2.       the addition of a new paragraph (i) as follows, and the re-lettering of the original paragraph (h) as a new paragraph (j):-

 

 

 

(i)       notes the failure of successive governments over the last 30 years to tackle the climate emergency and believes that the society we would have built; with warmer, better insulated low energy homes, locally generated clean, green energy and more food produced in the UK, would have had a significant impact on reducing the cost of living crisis;

 

 

 

3.       the addition of a new paragraph (k) as follows, and the re-lettering of the original paragraphs (i) to (m) as new paragraphs (l) to (p):-

 

 

 

(k)      notes that the "exponential growth" model of what makes a successful economy ignores its impact on climate change and nature and will make social and economic problems more severe, both now and into the future, therefore believes we need to make the necessary changes now and strongly, to promote Sheffield as a resilient city.

 

 

 

4.       the insertion, in the new paragraph (o) [the original paragraph (l)], of the words “as successfully proposed in the Green Group motion on 1st June 2022,” after the words “steering group”;

 

 

 

5.       the addition of a new paragraph (q) as follows, and the re-lettering of the original paragraphs (n) and (o) as new paragraphs (r) and (s):-

 

 

 

(q)      supports policies that:-

 

 

 

(i)       increase minimum wage to £15/hour, ensure public sector wages keep pace with inflation and start restoring real wage losses from years of austerity;

 

 

 

(ii)       restore the £20 uplift to Universal Credit and double it to £40 per week;

 

 

 

(iii)      increase tax on the wealthiest 1% to tackle rising inequality and support those on lowest incomes;

 

 

 

(iv)      restore the cap on bankers’ bonuses;

 

 

 

(v)      restore the Energy Price Cap to the October 2021 level, saving many households more than £2,000/year, financed by a windfall tax on energy producers;

 

 

 

(vi)      back an Employers Workplace Parking Levy to fund sustainable transport improvements, ensuring more council funding can be allocated to stretched services; and

 

 

 

(vii)     re-nationalise the UK’s energy providers.

 

 

8.4

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

 

 

8.4.1

(NOTE: The result of the vote was FOR - 28 Members; AGAINST - 45 Members; ABSTENTIONS – 1 Member.)

 

 

8.5

The amendment moved by Councillor Paul Turpin was then put to the vote and was carried in part.  Part 1 and sub-paragraphs (q)(iv), (v) and (vii) of Part 5 of the amendment were carried, and Parts 2, 3, 4 and sub-paragraphs (q)(i), (ii), (iii) and (vi) of Part 5 of the amendment were lost.

 

 

8.5.1

(NOTE: The result of the vote was FOR - 46 Members; AGAINST - 27 Members; ABSTENTIONS – 0 Members.  The Labour Group Members voted for, but against Parts 2, 3, 4 and sub-paragraph (q)(vi) of Part 5 of the amendment, and abstained on sub-paragraphs (q)(i) to (iii) of the amendment.  Councillor Sophie Wilson voted for, but against sub-paragraph (q)(vi) of Part 5 of the amendment.)

 

 

8.6

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

 

 

 

 

 

RESOLVED: That this Council:-

 

 

 

(a)      notes that inflation is at over 10%, with Britain the only G7 economy where inflation has hit double digits;

 

 

 

(b)      believes that the Government’s reckless mini-budget has crashed the economy, and though the Prime Minister and Chancellor may have again changed, the damage has already been dealt;

 

 

 

(c)      notes that the unfunded tax cuts caused financial disaster – with spiralling interest on government bonds, and crashing the pound to its weakest ever position against the dollar;

 

 

 

(d)      notes that the effect of this has been soaring mortgage repayment costs, higher inflation and widespread economic turmoil, further compounding the current cost-of-living crisis;

 

 

 

(e)      rejects any return to discredited austerity policies by the Government under the guise of “tough choices”, believing that it is a self-defeating policy which does nothing to help the UK’s finances and serves only to redistribute wealth from the poor to the rich;

 

 

 

(f)       notes that in response to the crisis of their own making, the Government have now reneged on plans to provide a two-year cap on the cost of energy units, and have slashed this guaranteed support to 6 months instead;

 

 

 

(g)      believes that as this Government attempt to balance the country’s finances following their complete and utter mismanagement of the economy, the burden for this must not fall on Sheffield residents or cash-strapped public services;

 

 

 

(h)      notes that the Council is already facing its worse ever budget position – caused by inflation, unprecedented energy costs and twelve preceding years of government cuts, meaning that there is now very little flexibility for the Council to make additional savings;

 

 

 

(i)       notes that Sheffield Council will have lost around £300 million from its budget, in real terms, since 2010 – around a third of the Council’s entire budget – making it even harder for the organisation to support the city’s residents during the cost-of-living crisis;

 

 

 

(j)       notes, however, that despite the financial difficulties, this Council is doing everything it can to support residents through this crisis, with the Council creating a package of support to provide all available guidance (financial, fuel, food) for anyone facing hardship;

 

 

 

(k)      notes that alongside partners in Voluntary Action Sheffield and numerous VCFS organisations, the Council has created a network of ‘Welcome Places’ which will provide convenient spaces for people to access help or just call in to get warm, have a cup of tea and a chat, in their local communities;

 

 

 

(l)       believes that Sheffield’s warm and welcoming places should harness everything great about the support that exists in the city, providing places for people to socialise, undertake activities, share advice, learn and support each other;

 

 

 

(m)     notes that the Council has formed a cost-of-living steering group, chaired by the Council Leader, and believes that as an organisation we must work on the crisis with the same resolve and collective spirit as was needed throughout the pandemic;

 

 

 

(n)      supports the Labour Party’s plan to take real action now to tackle the Government’s cost of living crisis:-

 

(i)     cut VAT on home energy bills;

 

(ii)     save on energy bills now and in the longer term by insulating millions of homes;

 

(iii)    cut small business rates and support businesses through the cost of living storm;

 

(iv)    buy, make and sell more in Britain to create well-paid, secure jobs in every community; and

 

(v)    establish a state-owned energy company – Great British Energy – charged with investing in and running green energy projects across the country, leading to clean growth and lower energy bills;

 

 

 

(o)       supports policies that:-

 

(i)     restore the cap on bankers’ bonuses;

 

(ii)     restore the Energy Price Cap to the October 2021 level, saving many households more than £2,000/year, financed by a windfall tax on energy producers; and

 

(iii)    re-nationalise the UK’s energy providers;

 

 

 

(p)      calls on the Government to finally provide sufficient financial support for households, businesses and local authorities to ensure that people in Sheffield get the support they need through this ongoing crisis that this Council believes is of their making; and

 

 

 

(q)      believes that whilst the Government is not providing any funding to do what is really needed to support people fully, or to provide the public services we should expect, it is important that the Council helps to lead the co-ordinated efforts across the city to support residents through this ongoing crisis.

 

 

 

 

8.6.1

(NOTE: The result of the vote was FOR - 73 Members; AGAINST - 1 Member; ABSTENTIONS – 0 Members.  The Liberal Democrat Group Members voted for, but against paragraphs (e), (n) and (o) of the Substantive Motion.  Councillor Lewis Chinchen voted against, but voted for paragraphs (k) to (m) of the Substantive Motion.)