Agenda item

Report of the Head of Finance

Presented by the Corporate Portfolio Holder

The Corporate Portfolio Holder presented the report to Members.  He advised that the proposals had been agreed by all preceptors following the reduction in Government grant.

Councillor P Hyde stated that it was getting harder to provide the same services for less money.  He felt that he could not support the proposals as this represented at 75% increase for the less well-off.  He added that the majority of those affected were working families.  He stated that the Government were attacking hard-working people and single parent families.  He felt that recommendation 2 should not be delegated to the Cabinet and should be a decision of Council.

Councillor J Geary stated that the current position was due to a lack of funds because the Government had not provided any.  He added that no one was blaming the banking system for the current economic position, but he felt that this was a contributing factor.  He stated that the wealthiest people were being given tax breaks whilst the poor were being clobbered at every opportunity.  He added that lots of people were having to choose between heating their homes and buying food, and food banks were the only growing industry at present.  He felt that this was down to the current Administration.  He referred to recommendation 2 and felt that delegating further powers to Cabinet was a retrograde step.  He felt that the matter of raising taxes must be a responsibility of the Full Council and he wanted every decision to come back to the Chamber.

Councillor J Legrys stated that he was perplexed that there was no money, however there was money available to build HS2.  He added that he was appalled by this, had shared his views and would be writing to the Leader to invite him to visit a food bank.  He felt that methods other than hitting the poor should be considered.  He added that this would be increasing the burden by 75% and was forcing the poor to use food banks.  He stated that he could not support the proposal as it was morally wrong.

Councillor N Clarke stated that the agenda was full of items which were a direct impact of the Government.  He stated that you could blame the previous Government of the banks, but the people who were not to blame were those who were affected by the policy.  He highlighted that the report seemed to show a small surplus, and felt that every penny should go to support the people who were affected by the policy.

Councillor T Neilson stated that there was a cost of living crisis in Great Britain and people were still struggling.  He added that payday loan companies were rife, loan sharks were prevalent and courts were experiencing a boom.  He stated that at a time when everyone was feeling the squeeze, the Council was asking those who were feeling it most to pay more again.  He felt that it was unfair that millionaires were being given a tax break.  He wondered for how long people would continue to find the extra money when personal debt was increasing.  He stated that the Council had a duty to ensure that people did not have to choose between heating or eating.  He added that next year this would be a decision of Cabinet, and the Council had no voice.  He stated that no one should support recommendation 2 as it was an abomination.

Councillor D De Lacy stated that the Conservative and Liberal Democrat Government had cut funding to the very poorest people by 10% and had directed these cuts at the working poor.  He added that the Government was responsible for this situation.  He felt that the views of those who interacted with the deprived should be listened to.  He stated that the majority of the Cabinet were millionaires and did not see the issues that charities and doctors experienced.  He added that the Government were arguing for bankers to receive twice their annual salary in bonuses when Europe was limited to one month’s salary.  He felt that the Government were in denial.  He stated that he would be voting against the proposals as this was a brutal step by the Government in making the least well-off even worse off.

Councillor D Everitt stated that this was a moral question and when the Government did not support vulnerable people, there would be a backlash.  He added that as a senior citizen he was embarrassed that he was exempt from the policy.  He felt that the policy would have repercussions and was a reversal of everything this country had been proud of where things had become progressively better for everyone.  He stated vehemently that he was appalled and if he was living in Scotland he would be asking himself if he wanted to be part of this country.

Councillor L Massey referred to her work at the Marlene Reid Centre which operated a food bank.  She also referred to her previous appeal to Members to visit the centre.  She stated that people did not want to be in debt and were embarrassed to have to rely on a food bank.  She felt that this was a disgrace.

Councillor N J Rushton stated that everyone was in agreement about the dire financial straits that the country was in.  He added that the deficit still remained and the first issue to deal with was the benefits budget.  He stated that these changes were imposed by the Government a year ago, and the Council had received a transitional grant which had now been withdrawn.  He added that the scheme had been agreed by all preceptors and had to be approved as a matter of principle.  He agreed that everyone should pay something and felt this was a good principle.  He also felt that pensioners should be exempted.  He added that a hardship fund had been established and only £5,500 out of £58,000 had been claimed, which demonstrated that this was obviously not needed.  He reported that many people had paid the additional amount as a lump sum.  He stated that the Labour Government had created this situation and could not criticise tough decisions as they were incapable of making them.  He stated that people should not trust Labour to sort out this mess.  He urged Members to support the motion.

Councillor A C Saffell stated that he was unable to vote as he disagreed with recommendation 2.

It was moved by Councillor N J Rushton, seconded by Councillor R Blunt and

RESOLVED THAT:

a)  The maximum level of Council Tax Support available be reduced from 91.5% to 85% from 1 April 2014.

b)  Authority be delegated to the Cabinet to make any further changes to the scheme in future financial years.