Agenda item

Taxation Changes

It was moved by Councillor Simon Clement-Jones, seconded by Councillor Shaffaq Mohammed, that this Council:-

(a)        recalls the Liberal Democrat manifesto commitment in 2010 to raise the income tax threshold to £10,000;

(b)        notes that from April, as a result of Liberal Democrats in Government, the income tax paid by a full-time worker on the minimum wage will be almost halved thanks to the increase in the income tax threshold;

(c)        is pleased to see that the Coalition Government has gone further in the 2013 Budget by confirming the income tax threshold will increase by a further £560 to £10,000 from April 2014, one year earlier than planned;

(d)        welcomes that as a result of Liberal Democrat influence since 2010, 195,000 workers in Sheffield will see a £700 tax cut, while 21,280 low paid workers will have been lifted out of income tax altogether; and

(e)        furthermore, notes that the Coalition Government have ensured the super rich pay their fair share by cracking down on tax avoidance; putting a tax on private jets, increasing Capital Gains Tax for higher rate taxpayers, and blocking inheritance tax breaks.

Whereupon it was moved by Councillor Bryan Lodge, seconded by Councillor Ian Saunders, 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)       regrets that the Government is giving with one hand but taking away much, much more with the other;            

(b)       notes that April’s increase in the personal allowance doesn’t make up for what families have already lost in terms of tax and benefit changes;

(c)        further notes that when the impact of higher VAT and cuts to things like tax credits are taken into account, research has demonstrated that a family with one earner and two children on £20,000 will be £381 a year worse off in 2013-14 and £600 a year worse off in 2014-15;

(d)       believes that the real priority of this Government is to support the 13,000 millionaires who are set to get an average tax cut of £100,000 in just a few weeks’ time;

(e)       opposes the Government’s decision to cut the top rate of income tax;

(f)        regrets that the Liberal Democrats have abandoned so many of their manifesto promises and have forfeited their principles for power; and

(g)       believes that the Liberal Democrats have been duplicitous and requests that they hold their coalition partners to account rather than supporting their unfair and damaging policies in government.      

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

(Note: Councillors Robert Murphy and Jillian Creasy voted for paragraphs (a), (b), (c) and (e) and abstained on paragraphs (d), (f) and (g) of the amendment and asked for this to be recorded.)

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

RESOLVED: That this Council:-

(a)       regrets that the Government is giving with one hand but taking away much, much more with the other;            

(b)       notes that April’s increase in the personal allowance doesn’t make up for what families have already lost in terms of tax and benefit changes;

(c)        further notes that when the impact of higher VAT and cuts to things like tax credits are taken into account, research has demonstrated that a family with one earner and two children on £20,000 will be £381 a year worse off in 2013-14 and £600 a year worse off in 2014-15;

(d)       believes that the real priority of this Government is to support the 13,000 millionaires who are set to get an average tax cut of £100,000 in just a few weeks’ time;

(e)       opposes the Government’s decision to cut the top rate of income tax;

(f)        regrets that the Liberal Democrats have abandoned so many of their manifesto promises and have forfeited their principles for power; and

(g)       believes that the Liberal Democrats have been duplicitous and requests that they hold their coalition partners to account rather than supporting their unfair and damaging policies in government.      

(Note: Councillors Robert Murphy and Jillian Creasy voted for paragraphs (a), (b), (c) and (e) and abstained on paragraphs (d), (f) and (g) of the Substantive Motion and asked for this to be recorded.)