Issue - meetings

Chancellor of the Exchequer - Autumn Statement

Meeting: 20/12/2012 - Cabinet (Item 148)

148 Chancellor of the Exchequer - Autumn Statement pdf icon PDF 311 KB


The Interim Director of Finance reported upon the Chancellor of the Exchequer’s Autumn Statement of 5 December 2012. His report provided a summary of the main issues, a number of which had a direct bearing on local authorities. What was clear was that there would be no let up in the pressure being applied to local authority finances. The Chancellor had made it clear that spending reductions would continue into 2017-18. Additional spending cuts of £445 million were to be imposed on local authorities in 2014-15.  Wirral’s resources could therefore be reduced by a further £5.2m over 2014-16. As a result, the 3-year savings target would increase from £103.5m to £108.7m, assuming an even distribution between local authorities. 


In moving a motion, Councillor Phil Davies stated that the Autumn Statement revealed the true scale of David Cameron and George Osborne’s economic failure. They were failing on jobs and growth, with the economy shrinking this year. As a result, borrowing and debt figures had been revised up and the Government had had to admit it was failing on the one test they set themselves – to balance the books and get the debt down by 2015.


He further stated that, while millionaires got a £3 billion tax cut, it was people who were already struggling to make ends meet – middle and lower income families and pensioners – who were paying the price for this failure. Funding for local government was cut by 2% from 2014/15. This increased Wirral Council’s budget shortfall from £103 million to £109 million over the next three years. Instead of a change of course, the Autumn Statement was just more of the same failing policies.


On a motion moved by Councillor Phil Davies, seconded by Councillor McLachlan, it was -


Resolved – That Cabinet agrees that instead of ‘more of the same’ what was needed was a One Nation approach to the economy: an economy that grows, where everybody has a stake and where the rewards are fairly shared:


·  A real plan for jobs and growth, including genuinely bringing forward infrastructure investment, a temporary VAT cut and a bank bonus tax to fund a jobs guarantee for young people.


·  Long-term reforms to make our economy stronger, including proper reforms to our banks.


·  And cancelling the tax cut for millionaires at a time when millions of families and pensioners are paying more.