Proposed by Councillor Brian Kenny

Seconded by Councillor Ann McLachlan

This Council is totally opposed to the increase in VAT to 20% from January 2011 as it will hit the poorest members of society the hardest.

Amendment submitted in accordance with Standing Order 7(2).

Proposed by Councillor Les Rowlands

Seconded by Councillor Ian Lewis

Delete all after ‘This Council is’ and replace with:

, like every other council, suffering the effects of Labour’s debt crisis. This left Britain with the worst debt of any major advanced economy.

Council believes that Labour maxed out the credit card with government debt. As we all know, when you run up massive credit card bills, the longer you leave it the worse it gets.

Council believes that if we don’t take steps now to live within our means we’ll end up paying higher taxes or making deeper spending cuts just to pay-off our debt. 

Council is concerned that if we don’t get our debt under control, we will burden our children and grandchildren with the bills for Labour’s mistakes.

Council notes that the most vulnerable people in Wirral and those on lowest incomes are often more reliant on loans and credit cards for day-to-day living and believes that any rise in interest rates caused by not tackling the national deficit will hit them hardest.

Council notes that those on lower incomes spend a higher proportion of their income on fuel, food and children’s clothes, all of which will not be affected by the increase in VAT, as pointed out by Labour when they increased VAT from 15% to 17.5% in January 2009

Council also rejects the policy of the previous Labour Government which saw the abolition of 10p rate of tax on the lowest paid.

Council welcomes the additional support by the Coalition Government  now being provided to the lowest paid in Wirral, including:

·  Lifting almost 1 million of the lowest paid out of income tax altogether with a target to raise the threshold to £10,000, as proposed by the Liberal Democrats

·  Exempting the lowest paid workers from the national public sector pay freeze

·  Linking increases in the basic state pension to increases in wages, prices or 2.5%, whichever is higher

·  Increasing the amount spent on the child element of the child tax credit by £2 billion, helping the lowest paid by £150 above inflation

·  The increase in the Minimum Wage and the decision by the Coalition Government to extend the Minimum Wage to apprentices

The amendment was put and carried (41:22)

Amendment submitted in accordance with Standing Order 7(2).

Proposed by Councillor Simon Holbrook

Seconded by Councillor Dave Mitchell

Delete all after ‘This Council’ and replace with:

condemns the hypocrisy of the Labour Party, who had plans to raise VAT to 19% had they won the General Election.

Council notes that over the course of this Parliament, the point at which people start having to pay income tax and National Insurance will rise by nearly £4,000 to £10,000 a year, starting with a £1000 increase this year.

Council notes that this rise in the amount people can earn before paying tax will take many Wirral residents out of tax altogether and that it will be of particular benefit to people on low incomes.

Council further notes that the Coalition was able to make this tax cut despite the appalling financial mess it inherited from the last Labour Government, which left Britain with the worst National Debt since the Second World War.

The amendment was put and carried (41:22)

The motion as amended was put and carried (41:22)

Resolved (41:22) –

This Council is like every other council, suffering the effects of Labour’s debt crisis. This left Britain with the worst debt of any major advanced economy.

Council believes that Labour maxed out the credit card with government debt. As we all know, when you run up massive credit card bills, the longer you leave it the worse it gets.

Council believes that if we don’t take steps now to live within our means we’ll end up paying higher taxes or making deeper spending cuts just to pay-off our debt. 

Council is concerned that if we don’t get our debt under control, we will burden our children and grandchildren with the bills for Labour’s mistakes.

Council notes that the most vulnerable people in Wirral and those on lowest incomes are often more reliant on loans and credit cards for day-to-day living and believes that any rise in interest rates caused by not tackling the national deficit will hit them hardest.

Council notes that those on lower incomes spend a higher proportion of their income on fuel, food and children’s clothes, all of which will not be affected by the increase in VAT, as pointed out by Labour when they increased VAT from 15% to 17.5% in January 2009

Council also rejects the policy of the previous Labour Government which saw the abolition of 10p rate of tax on the lowest paid.

Council welcomes the additional support by the Coalition Government now being provided to the lowest paid in Wirral, including:

·  Lifting almost 1 million of the lowest paid out of income tax altogether with a target to raise the threshold to £10,000, as proposed by the Liberal Democrats

·  Exempting the lowest paid workers from the national public sector pay freeze

·  Linking increases in the basic state pension to increases in wages, prices or 2.5%, whichever is higher

·  Increasing the amount spent on the child element of the child tax credit by £2 billion, helping the lowest paid by £150 above inflation

·  The increase in the Minimum Wage and the decision by the Coalition Government to extend the Minimum Wage to apprentices

This Council condemns the hypocrisy of the Labour Party, who had plans to raise VAT to 19% had they won the General Election.

Council notes that over the course of this Parliament, the point at which people start having to pay income tax and National Insurance will rise by nearly £4,000 to £10,000 a year, starting with a £1000 increase this year.

Council notes that this rise in the amount people can earn before paying tax will take many Wirral residents out of tax altogether and that it will be of particular benefit to people on low incomes.

Council further notes that the Coalition was able to make this tax cut despite the appalling financial mess it inherited from the last Labour Government, which left Britain with the worst National Debt since the Second World War.