Proposed by Councillor Jean Stapleton

Seconded by Councillor Ann McLachlan

(1)  This Council expresses its deep concern about the “reality gap” opening up between the propaganda surrounding announcements of Government policy and the reality in practice.

(2)  Council notes that the Cabinet Member for Work and Pensions, Ian Duncan Smith, has set out his plans at the Tory conference to change the Welfare Benefit system in favour of moving people off benefits into work, thereby reducing the numbers of people in poverty, and cutting the Welfare Benefits bill.

(3)  However, Council notes:

·  The Coalition Government says they want more people in work, yet their own figures show that their plans to cut the deficit will throw 100,000 more people out of work every year than Labour plans.

·  They cancelled the two year Job Seekers guarantee which was aimed at giving jobseekers a guaranteed offer of a job, internship, volunteering placement or work experience if they were out of work for two years or more.

·  They axed the Future Jobs Fund and slashed the Working Neighbourhood Fund, which are designed precisely to improve the number of jobs available and in particular to give opportunities to young people.

·  On Wirral, without any consultation, £1.6m was axed from the Working Neighbourhood Fund which could have paid for more apprentices, helping Wirral residents into work.

·  Four million in total was slashed from the Area Based Grant, without any consultation, affecting schools, children’s services, Wirral jobs and other services.

·  The Council is one of the largest employers on Wirral, yet Government plans to slash local government funding in the forthcoming Comprehensive Spending Review, leading to dramatic cuts in services, could see thousands of jobs going on Wirral alone.

·  Increasing VAT to 20% will penalise the poor most and the Institute for Fiscal Studies has pointed out that the Coalition’s budget was a regressive one, hitting the poor hardest.

·  Introducing a cap on Housing Benefit, which is extensively used by those in work on low incomes, will lead to intensive overcrowding in unsuitable accommodation or to families being evicted and made homeless as the increase in top up fees makes their homes unaffordable.

(4)  Council believes that this is not the record of a Government set on improving work opportunities and cutting poverty. Rather it is the record of a Government which, once again, will penalise the poor in order to help the rich.

Amendment submitted in accordance with Standing Order 7(2)

Proposed by Councillor John Hale

Seconded by Councillor James Keeley

Delete all after “Council” in paragraph 1 and insert:

(1)  This Council welcomes the support of the World Bank, the International Monetary Fund, the European Union, and the vast majority of economists and financial analysts for the Coalition plans for debt reduction.

(2)  Council notes that the Cabinet Member for Work and Pensions, Ian Duncan Smith, has set out his plans at the Conservative conference to change the Welfare Benefit system in favour of moving people off benefits into work, thereby reducing the numbers of people in poverty, and cutting the Welfare Benefits bill.

Delete (3) and insert:

(3)  This Council notes:

·  That the last Labour Government left a deficit of £156 billion, costing billions of pounds in interest charges.

·  That despite a record deficit of £156 billion, the outgoing Labour Government had only identified £22 billion savings, which would have meant a year on year increase in the deficit and interest charges.

·  That if no action was taken, the country’s mortgage would rise to £1.4 trillion in 2015, with the National Debt incurring £70 billion a year interest – more than the schools, climate change and transport budgets put together.

·  That if no action was taken, the country’s credit rating could be affected, leading to much higher interest rates with adverse effects on jobs, family incomes, with increased mortgage defaults.

(4)  This Council recognises that action needs to be taken to address the financial challenges arising from the global recession and recognises the distress, anger and upset caused to people across Wirral, including some of the most deprived communities by the previous Labour Government’s financial and regulatory mismanagement, such as cuts to public services and abolition of the 10p starting rate of Income Tax for the lowest paid.  Council notes that the overall impact of all the measures in the Chancellor’s Budget of 22 June was progressive, building on the coalition’s principles of freedom, fairness and responsibility.

(5)  Council also notes that while other countries went into recession later and returned to growth faster, the UK economy suffered the longest period of recession since the 1930s.

(6)  Council believes that the action taken by the Coalition Government will restore the nation’s finances and also enable fairer, greener taxes and protection for the most vulnerable, including:

·  Raising the personal allowance for under 65s by £1,000 in April 2011, with the gains limited to basic rate taxpayers.  The Government estimates that the 880,000 lowest income taxpayers will be removed from tax altogether.

·  The introduction of a levy based on banks’ balance sheets and action on unacceptable bank bonuses.

·  Freezing council tax in 2011-12, in partnership with local authorities.

·  A triple guarantee to help pensioners by uprating the Basic State Pension by earnings, prices or 2.5%, whatever is highest.

·  An increase in the child element of the Child Tax Credit of £150 above CPI indexation.

·  Increase capital gains tax to 28% for top rate taxpayers.

(7)  Council recognises that the public understands that action is needed to address the unsustainable levels of government debt and applauds the initiative taken nationally by the Coalition Government and locally by Wirral’s Cabinet to engage with the public on their priorities for future public spending of taxpayer’s money.  Council further notes that this represents a continuation of the Council’s policy on engagement agreed with all party support on 15 February 2010.

(8)  Council is outraged but not surprised at the utter hypocrisy of the Labour Party for its failure to be honest with the public about the scale and impact of the budget reductions needed as a result of its own party’s mistakes in government, and for suggesting that the Conservatives and Liberal Democrats are wrong to consult the public on the difficult challenges that lie ahead.

Amendment submitted in accordance with Standing Order 7(2)

Proposed by Councillor Simon Holbrook

Seconded by Councillor Phil Gilchrist

Delete paragraph (1) and renumber existing paragraph (2) as paragraph (1)

Delete existing paragraph (3)

Renumber paragraph (4) as paragraph (2) and replace all text after “Council believes” with “that helping people into work and ensuring no one is out of pocket after moving from unemployment to work is the best way to reduce poverty and ensure fairness for taxpayers”.

The amendment was accepted as a friendly amendment to the Conservative Group amendment.

The Conservative/Liberal Democrat amendment was put and carried (37:23:1)

Resolved (37:23:1) –

(1) Council notes that the Cabinet Member for Work and Pensions, Ian Duncan Smith, has set out his plans at the Tory conference to change the Welfare Benefit system in favour of moving people off benefits into work, thereby reducing the numbers of people in poverty, and cutting the Welfare Benefits bill.

(2)  Council believes that helping people into work and ensuring no one is out of pocket after moving from unemployment to work is the best way to reduce poverty and ensure fairness for taxpayers”.

(3)  This Council welcomes the support of the World Bank, the International Monetary Fund, the European Union, and the vast majority of economists and financial analysts for the Coalition plans for debt reduction.

(4)  This Council notes:

·  That the last Labour Government left a deficit of £156 billion, costing billions of pounds in interest charges.

·  That despite a record deficit of £156 billion, the outgoing Labour Government had only identified £22 billion savings, which would have meant a year on year increase in the deficit and interest charges.

·  That if no action was taken, the country’s mortgage would rise to £1.4 trillion in 2015, with the National Debt incurring £70 billion a year interest – more than the schools, climate change and transport budgets put together.

·  That if no action was taken, the country’s credit rating could be affected, leading to much higher interest rates with adverse effects on jobs, family incomes, with increased mortgage defaults.

(5)  This Council recognises that action needs to be taken to address the financial challenges arising from the global recession and recognises the distress, anger and upset caused to people across Wirral, including some of the most deprived communities by the previous Labour Government’s financial and regulatory mismanagement, such as cuts to public services and abolition of the 10p starting rate of Income Tax for the lowest paid.  Council notes that the overall impact of all the measures in the Chancellor’s Budget of 22 June was progressive, building on the coalition’s principles of freedom, fairness and responsibility.

(6)  Council also notes that while other countries went into recession later and returned to growth faster, the UK economy suffered the longest period of recession since the 1930s.

(7)  Council believes that the action taken by the Coalition Government will restore the nation’s finances and also enable fairer, greener taxes and protection for the most vulnerable, including:

·  Raising the personal allowance for under 65s by £1,000 in April 2011, with the gains limited to basic rate taxpayers.  The Government estimates that the 880,000 lowest income taxpayers will be removed from tax altogether.

·  The introduction of a levy based on banks’ balance sheets and action on unacceptable bank bonuses.

·  Freezing council tax in 2011-12, in partnership with local authorities.

·  A triple guarantee to help pensioners by uprating the Basic State Pension by earnings, prices or 2.5%, whatever is highest.

·  An increase in the child element of the Child Tax Credit of £150 above CPI indexation.

·  Increase capital gains tax to 28% for top rate taxpayers.

(8)  Council recognises that the public understands that action is needed to address the unsustainable levels of government debt and applauds the initiative taken nationally by the Coalition Government and locally by Wirral’s Cabinet to engage with the public on their priorities for future public spending of taxpayer’s money.  Council further notes that this represents a continuation of the Council’s policy on engagement agreed with all party support on 15 February 2010.

(9)  Council is outraged but not surprised at the utter hypocrisy of the Labour Party for its failure to be honest with the public about the scale and impact of the budget reductions needed as a result of its own party’s mistakes in government, and for suggesting that the Conservatives and Liberal Democrats are wrong to consult the public on the difficult challenges that lie ahead.