Proposed by Councillor Phil Davies

Seconded by Councillor Ann McLachlan

Council notes that:

(i).  Sir Merrick Cockell, the outgoing chairman of the Local Government Association, has said increasing demands from a growing elderly population and cuts in council grants will lead to a funding gap of £5.8bn between March 2014 and March 2016 and a catastrophe in elderly care. The LGA predicts that by 2020 local authorities will have to spend 40% of their resources on elderly care. Council budgets have been cut by about 33% since 2010 as part of the austerity programme, including a £2.8bn reduction in social care funding.

(ii).  In Wirral, between 2014 and 2017 the gap between forecast expenditure and income is £45m which equates to a further 20% reduction in expenditure;

(iii).  Cuts of £70m are required between 2014/15 and 2017/18 to balance the books.

(iv).  By 2016 the government will have cut Wirral’s grant by 57% (£127m);

(v).  The Council’s budget is currently running a small under-spend, having been over-spent by £17m under the previous Administration;

(vi).  Whilst every effort has been made to minimise the impact of savings on front-line services, some of the budget reductions over the past two years have had negative impacts;

(vii).  Given the scale of the further savings required over the next three years it will become even more difficult to maintain good quality front-line services;

(viii).  The ‘Future Council’ programme will help to identify the core services which the Council should provide in the future. It will also help us to put in place new models to enable us to deliver more for less;

In light of the above, Council agrees to the following:

(1)  To reaffirm the principles on which we have based budgetary decisions, i.e. those with the broadest shoulders should bear the greatest burden; to minimise the impact on front-line services. Budget options should also enable us to meet our corporate priorities as far as possible, i.e. attracting jobs and investment; protecting the vulnerable; tackling inequalities;

(2)  To retain the relatively generous voluntary severance scheme for our staff as long as possible and to do everything possible to ensure that reductions in posts are achieved by voluntary means;

(3)  To help residents deal with the cost of living crisis, if the conditions surrounding the Council Tax Freeze Grant are maintained in 2015/16, then the Administration confirms its intention to freeze the Council Tax for a further year;

(4)  To continue to use every opportunity to lobby the government to reverse the damaging cuts to local government and, in particular, the unfair way in which Councils in the North of England have been forced to bear the brunt of the cuts. We will work with others to highlight this injustice and to campaign for a fair deal for Wirral from whichever party forms the government following next year’s general election.

An amendment which had been circulated in advance of the meeting was submitted in accordance with Standing Order 12(1) and (9), as follows:

Proposed by Councillor Phil Gilchrist

Seconded by Councillor Dave Mitchell

Add after clause (4):

“(5) Requests the Chief Executive to develop a coherent and constructive case built on the foundations laid by the Local Government Association ‘Future funding outlook 2014’ which takes account of the move to greater devolution of powers and finances suggested in the Adonis Review and by the LGA and sets out the local constraints on raising the business rates and additional income from new properties in Wirral.

This case should be developed and built on a dialogue and co-operation with all groups on the Council so that it can be supported and signed off with all party backing.”

The Mayor then requested the movers of the motion and amendment to speak to their proposals followed by the seconders.

The amendment was put and carried (41:18) (Two abstentions)

Prior to the vote on the substantive motion as amended, Councillor Phil Davies and five Labour Members rose to request a ‘card vote’.

Councillor Blakeley sought clarification as to whether a ‘card vote’ could be taken after imposition of the ‘guillotine’ (Standing Order 9).

The Head of Legal and Members Services confirmed that a ‘card vote’ could still be taken after Standing Order 9 had come into effect, in accordance with Standing Order 18 (7).

A ‘card vote’ was then taken on the substantive motion as amended and the Council divided as follows:

For the motion (41) Councillors RL Abbey, A Brighouse, P Brightmore, C Carubia, J Crabtree, M Daniel, G Davies, P Davies, WJ Davies, P Doughty, PN Gilchrist, RJ Gregson, P Hackett, T Johnson, AER Jones, C Jones, S Kelly, A Leech, ARC McLachlan, M McLaughlin, D Mitchell, B Mooney, C Muspratt, S Niblock, T Norbury, M Patrick, D Realey, L Reecejones, J Salter, H Smith, PA Smith, W Smith, C Spriggs, J Stapleton, M Sullivan, J Walsh, S Whittingham, I Williams, KJ Williams, Mrs P Williams and J Williamson.

Against the amendment (18) Councillors T Anderson, B Berry, C Blakeley, E Boult, DM Elderton, G Ellis, L Fraser, J Green, J Hale, P Hayes, AC Hodson, K Hodson, M Hornby, Mrs L Rennie, SL Rowlands, T Smith, GCJ Watt, and S Williams.

Two abstentions – Councillors P Cleary and S Foulkes.

Resolved (41:18) (Two abstentions) –

Council notes that:

(i).  Sir Merrick Cockell, the outgoing chairman of the Local Government Association, has said increasing demands from a growing elderly population and cuts in council grants will lead to a funding gap of £5.8bn between March 2014 and March 2016 and a catastrophe in elderly care. The LGA predicts that by 2020 local authorities will have to spend 40% of their resources on elderly care. Council budgets have been cut by about 33% since 2010 as part of the austerity programme, including a £2.8bn reduction in social care funding.

(ii).  In Wirral, between 2014 and 2017 the gap between forecast expenditure and income is £45m which equates to a further 20% reduction in expenditure;

(iii).  Cuts of £70m are required between 2014/15 and 2017/18 to balance the books.

(iv).  By 2016 the government will have cut Wirral’s grant by 57% (£127m);

(v).  The Council’s budget is currently running a small under-spend, having been over-spent by £17m under the previous Administration;

(vi).  Whilst every effort has been made to minimise the impact of savings on front-line services, some of the budget reductions over the past two years have had negative impacts;

(vii).  Given the scale of the further savings required over the next three years it will become even more difficult to maintain good quality front-line services;

(viii).The ‘Future Council’ programme will help to identify the core services which the Council should provide in the future. It will also help us to put in place new models to enable us to deliver more for less;

In light of the above, Council agrees to the following:

(1)  To reaffirm the principles on which we have based budgetary decisions, i.e. those with the broadest shoulders should bear the greatest burden; to minimise the impact on front-line services. Budget options should also enable us to meet our corporate priorities as far as possible, i.e. attracting jobs and investment; protecting the vulnerable; tackling inequalities;

(2)  To retain the relatively generous voluntary severance scheme for our staff as long as possible and to do everything possible to ensure that reductions in posts are achieved by voluntary means;

(3)  To help residents deal with the cost of living crisis, if the conditions surrounding the Council Tax Freeze Grant are maintained in 2015/16, then the Administration confirms its intention to freeze the Council Tax for a further year;

(4)  To continue to use every opportunity to lobby the government to reverse the damaging cuts to local government and, in particular, the unfair way in which Councils in the North of England have been forced to bear the brunt of the cuts. We will work with others to highlight this injustice and to campaign for a fair deal for Wirral from whichever party forms the government following next year’s general election.

(5)  Requests the Chief Executive to develop a coherent and constructive case built on the foundations laid by the Local Government Association ‘Future funding outlook 2014’ which takes account of the move to greater devolution of powers and finances suggested in the Adonis Review and by the LGA and sets out the local constraints on raising the business rates and additional income from new properties in Wirral.

This case should be developed and built on a dialogue and co-operation with all groups on the Council so that it can be supported and signed off with all party backing.