Agenda item

That this Council:-

(a)       acknowledges that the Government public sector net borrowing was £14.4bn in August, the biggest deficit for the month since records began with borrowing currently 22% more than last year;

(b)       notes we are experiencing the slowest economic recovery in modern memory due to this Government’s mis-management of economic policy;

(c)        regrets that for August 2012, corporation tax receipts fell by 2.1% and benefits payments rose by 4.9% showing that Government cuts are forcing more people into the welfare system and stifling the success of businesses;

(d)       believes these figures make it more likely that the Government will fail to achieve its aim of wiping out the structural budget deficit by 2015;

(e)       is dismayed at the failure of the Regional Growth Fund (RGF) to boost growth in the economy; in a report from The Commons Public Accounts Committee the RGF was called “nothing short of scandalous” criticising the Government’s management of the Fund after finding that only £60m of the £1.4bn fund had reached front-line projects;

(f)         holds the Secretary of State for Communities and Local Government and the Secretary of State for Business Innovation and Skills responsible for the failings;

(g)       recognises that quantitative easing is not enough to stimulate the economy, the Government must do more to stimulate growth;

(h)        regrets that because of the Government’s mis-management of the economy, with slower growth and higher unemployment, spending reductions are now set to continue beyond the current Parliament;

(i)         believes that the Government should now change course and take action to secure growth and supports Labour’s five-point growth plan for jobs and growth which includes:

(i)         repeating the bank bonus tax and using the money to build 25,000 affordable homes and guarantee a job for 100,000 young people;

(ii)        bringing forward long term investment projects, such as schools, roads and transport, to create jobs;

(iii)       reversing the Government’s VAT rise now for a temporary period;

(iv)       an immediate one-year cut in VAT to 5% on home improvements, repairs and maintenance; and

(v)        a one-year national insurance tax break for every small firm which takes on extra workers;

(j)         is aware that child poverty is rising as a result of the failure of this Government to manage the economy; more than one in four children in the UK lives in poverty, many in working families; under current Government policies, child poverty is projected to rise from 2012/13 with an expected 300,000 more children living in poverty by 2015/16 and this upward trend is expected to continue with 4.2 million children projected to be living in poverty by 2020;

(k)        notes the irony of the Liberal Democrat Party, who’s Leader has backed a cut in the top rate of tax resulting in a £3 billion tax cut for millionaires in the Budget while asking millions of pensioners and families to pay more, holding their annual conference around the theme “fair tax in tough times”;

(l)         believes there is nothing fair about a family with children paying an average £511 extra from changes the Government has brought in this year, while millionaires will get a £40,000 tax cut next year and believes that the Liberal Democrats will be judged on what they do, not what they say;

(m)      calls on the Government, which has created a double dip recession and is continuing to borrow more, missing its own targets while continuing to hit hard working families through tax rises and spending cuts, at the same time as they are cutting taxes for millionaires, to change course; and

(n)        directs that a copy of this motion is sent to the Chancellor of the Exchequer, the Secretary of State for Communities and Local Government and the Secretary of State for Business Innovation and Skills

It was moved by Councillor Adam Hurst, seconded by Councillor Tony Downing, that this Council:-

(a)       acknowledges that the Government public sector net borrowing was £14.4bn in August, the biggest deficit for the month since records began with borrowing currently 22% more than last year;

(b)       notes we are experiencing the slowest economic recovery in modern memory due to this Government’s mis-management of economic policy;

(c)        regrets that for August 2012, corporation tax receipts fell by 2.1% and benefits payments rose by 4.9% showing that Government cuts are forcing more people into the welfare system and stifling the success of businesses;

(d)       believes these figures make it more likely that the Government will fail to achieve its aim of wiping out the structural budget deficit by 2015;

(e)       is dismayed at the failure of the Regional Growth Fund (RGF) to boost growth in the economy; in a report from The Commons Public Accounts Committee the RGF was called “nothing short of scandalous” criticising the Government’s management of the Fund after finding that only £60m of the £1.4bn fund had reached front-line projects;

(f)         holds the Secretary of State for Communities and Local Government and the Secretary of State for Business Innovation and Skills responsible for the failings;

(g)       recognises that quantitative easing is not enough to stimulate the economy, the Government must do more to stimulate growth;

(h)        regrets that because of the Government’s mis-management of the economy, with slower growth and higher unemployment, spending reductions are now set to continue beyond the current Parliament;

(i)         believes that the Government should now change course and take action to secure growth and supports Labour’s five-point growth plan for jobs and growth which includes:

(i)         repeating the bank bonus tax and using the money to build 25,000 affordable homes and guarantee a job for 100,000 young people;

(ii)        bringing forward long term investment projects, such as schools, roads and transport, to create jobs;

(iii)       reversing the Government’s VAT rise now for a temporary period;

(iv)       an immediate one-year cut in VAT to 5% on home improvements, repairs and maintenance; and

(v)        a one-year national insurance tax break for every small firm which takes on extra workers;

(j)         is aware that child poverty is rising as a result of the failure of this Government to manage the economy; more than one in four children in the UK lives in poverty, many in working families; under current Government policies, child poverty is projected to rise from 2012/13 with an expected 300,000 more children living in poverty by 2015/16 and this upward trend is expected to continue with 4.2 million children projected to be living in poverty by 2020;

(k)        notes the irony of the Liberal Democrat Party, who’s Leader has backed a cut in the top rate of tax resulting in a £3 billion tax cut for millionaires in the Budget while asking millions of pensioners and families to pay more, holding their annual conference around the theme “fair tax in tough times”;

(l)         believes there is nothing fair about a family with children paying an average £511 extra from changes the Government has brought in this year, while millionaires will get a £40,000 tax cut next year and believes that the Liberal Democrats will be judged on what they do, not what they say;

(m)      calls on the Government, which has created a double dip recession and is continuing to borrow more, missing its own targets while continuing to hit hard working families through tax rises and spending cuts, at the same time as they are cutting taxes for millionaires, to change course; and

(n)        directs that a copy of this motion is sent to the Chancellor of the Exchequer, the Secretary of State for Communities and Local Government and the Secretary of State for Business Innovation and Skills

Whereupon, it was moved by Councillor Rob Frost, seconded by Councillor Ian Auckland, as an amendment, that the Motion now submitted be amended by the deletion of all the words after the words “That this Council” and the substitution of the following words therefor:-

(a)       believes no-one should underestimate the economic mess left by the last Government as a result of the light touch banking regulation masterminded by Rt Hon Gordon Brown MP and Rt Hon Ed Balls MP;

(b)       notes the previous Government’s questionable ability to handle public finances, increasing the national deficit year-on-year from 2001 onwards, reaching a total of £43bn prior to the economic crash;

(c)        however, notes the commitment of the last Government to halve the deficit by 2014, by pledging £82bn worth of cuts, alongside recent statements by the Rt Hon Ed Balls MP, confirming a Labour Government would be “ruthless” about cutting public spending if Labour wins the next election;

(d)       supports the decisive action taken by the Coalition Government, which has seen the structural deficit cut by a quarter since 2010, allowing the United Kingdom to avoid a loss of confidence experienced in Greece, Ireland and Italy;

(e)       welcomes the Sheffield City Region Deal, which has the potential to deliver 4,000 new apprenticeships, 2,000 employees with new training, and 12,000 new jobs at the City’s enterprise zone, which has been named the most attractive for businesses in the United Kingdom;

(f)         further welcomes the hundreds of millions of pounds of investment in the region’s infrastructure, including the recent announcement of the electrification of the Midland Main Line, the start of the Streets Ahead project, and the financial backing for a Sheffield University Technical College;

(g)       furthermore, commends the Government’s commitment to increase the income tax threshold to £10,000, cutting the tax bill of 24 million people and taking 2 million low paid workers out of income tax;

(h)        contrasts this to the last Government, who scrapped the 10p tax rate, doubling the tax bill for some of the lowest paid in the country and allowed hedge fund managers to pay less tax than their cleaners;

(i)         embraces recent comments made by the Deputy Prime Minister at the Liberal Democrat Conference, which encourage moves towards additional taxes on the very wealthy;

(j)         furthermore, welcomes the vote of representatives at the Liberal Democrat Conference, which endorsed the Government’s deficit reduction strategy; and

(k)        however, would still like to see the Coalition go further in promoting a more Liberal economy and therefore supports proposals discussed at the Conference including:

(i)         developing a more sustainable banking industry;

(ii)        further rebalancing the economy from the City of London to Northern cities like Sheffield;

(iii)       increasing the powers of the Green Investment Bank;

(iv)       increasing the numbers of mutuals, co-operatives and employee owned businesses; and

(v)        ring fencing the Government’s science budget.

On being put to the vote, the amendment was negatived.

Motion to move to next business

During the debate, it was moved by Councillor Jillian Creasy, seconded by Councillor Penny Baker, that the Council does now proceed to next business.

On being put to the vote, the motion was negatived.

It was then moved by Councillor Jillian Creasy, seconded by Councillor Robert Murphy, as an amendment, that the Motion now submitted be amended by:-

1.         the deletion of paragraph (i) and the addition of a new paragraph (i) as follows:-

(i)         acknowledges that Labour’s five point plan, whilst well intentioned, is a sticking plaster for a national economy that needs real reform for social and economic benefitand therefore believes the Government should implement a package of measures including:

(i)         setting up a people’s bank that is locally managed, which offers a sustainable local service to small businesses and residents;

(ii)        investing massively in a Green New Deal, creating a million new jobs and turning Britain into a world leader in sustainable industries;

(iii)       abolishing the upper limit for national insurance contributions and cutting tax avoidance and evasion, gaining £20 billion each year and making sure that those who are able to pay do so;

(iv)       abolishing VAT relief on financial services, aviation fuel and gambling, gaining £12 billion each year and removing Government subsidies to socially and environmentally damaging activities; and

(v)        re-investing in public services, recognising that austerity only leads to lost tax revenue, lost vital services, lost demand for private and third sector contracts, and a social blight of poverty and unemployment;

2.         the deletion of paragraph (n) and the addition of new paragraphs (n) to (r) as follows:-

(n)        directs that a copy of this Motion is sent to the Chancellor of the Exchequer, the Secretary of State for Communities and Local Government and the Secretary of State for Business Innovation and Skills;

(o)       notes that there is currently a consultation on the economic future of Sheffield;

(p)       believes it is important that all communities are engaged and involved in the economic future of Sheffield;

(q)       believes that there needs to be a sustainable approach to business and enterprise that concentrates on the vital role of the local economy in providing employment and routes to social well-being; and

(r)        recognises the important role Sheffield City Council can play in encouraging fairly paid, secure employment that is the desire of those most in need in the City.

On being put to the vote, the amendment was negatived.

(Note: The Deputy Lord Mayor (Councillor Vickie Priestley) and Councillors Simon Clement Jones, Shaffaq Mohammed, Rob Frost, Sylvia Anginotti, Joe Otten, Penny Baker, Diana Stimely, Roger Davison, Sue Alston, Andrew Sangar, Janice Sidebottom, Denise Reaney, Ian Auckland,Anders Hanson, Katie Condliffe, David Baker, Alison Brelsford and Trevor Bagshaw voted for Paragraph 2 and against Paragraph 1 of amendment and asked for this to be recorded.)

After a right of reply from Councillor Adam Hurst, the original Motion was put to the vote and carried, as follows: