Proposed by Councillor Steve Foulkes

Seconded by Councillor Phil Davies

(1)  Council notes that, under current proposals for the localisation of business rates, Wirral could be severely disadvantaged as the area would raise far less in business rates than it currently receives as part of a national redistribution of rates.

(2)  Council notes that the proposals contain an initial equalisation of resources to prevent any immediate loss, but that this would be a one off solution and that over time the gap between what Wirral can collect and the resources available to other wealthier councils will grow considerably, adding to the disparity of resources between richer and poorer areas already created by specifically targeting cuts on the Area Based Grant which was designed to help poorer areas.

(3)  Council therefore re-iterates its demand that any new system should be designed in such a way that Wirral and similar Councils with a low economic base and high levels of deprivation should be given a Fair Deal and not deprived of much needed resources.

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

Proposed by Councillor Tom Harney

Seconded by Councillor Dave Mitchell

Delete all after paragraph (1) and replace with:

(2) Council believes that what is needed is a long term solution that delivers a fair funding formula for all local authorities.

(3) Council reminds Cabinet and Chief Officers that the previous coalition administration instructed, at its meeting of 14th April 2011:

• That Officers and Members, as appropriate, undertake detailed work and proactively make representations to influence Government, with the aim of securing a fair and rebalanced funding formula to tackle Wirral’s underlying problems and provide adequate resources for local services.
• That input be made to collective lobbying through bodies such as SIGOMA, LGA, Liverpool City Region, other Councils and representative bodies, as appropriate, to promote the case for equalisation, seeking to ensure that those local authorities with a low income from business rates and a high level of Government grant support are not adversely affected by the proposed repatriation of business rates

(4) Council reminds Cabinet members that this Chamber agreed at its meeting of 18th April 2010 to:

• Request Cabinet to draw together a report to highlight data on Wirral’s underlying social problems, in particular highlighting how Wirral has benefited substantially from the redistribution of the business rates over the years, with the aim of securing a fair and rebalanced funding formula to tackle those underlying problems and provide adequate resources for local services.
• This report be then used as part of a campaign involving SIGOMA, the Local Government Association and other councils in speaking up for local Councils and ensuring the Department for Communities and Local Government specifically understand local needs

(5) Council, therefore, is disappointed that this proactive work, requested with the aim of influencing Government thinking on development of a fair funding formula has not been forthcoming and that too the emphasis needs to shift away from complaining about the Government and towards influencing and improving the Government’s proposals.

(6) Council is further concerned that the current Labour Administration is demonstrating a lack of confidence in their own abilities to stimulate Wirral’s economy and that they would prefer to rely on a system of handouts from Whitehall than to take any responsibility for localised fund raising.

(7) Council welcomes the opportunity for a delegation to meet with Eric Pickles in order to continue to influence Government thinking for the benefit of the people of Wirral in the development of a fair funding formula for local government that is sustainable in the longer term, from which the Council can properly plan the delivery of local services and which properly recognises factors important to Wirral, such as social and economic deprivation.

Having applied the guillotine in accordance with Standing Order 7(8) the Council did not debate this matter.

The amendment was put and carried (36:28) (One abstention).

The substantive motion was then put and carried (36:28) (One abstention).

Resolved (36:28) (One abstention) –

(1)  Council notes that, under current proposals for the localisation of business rates, Wirral could be severely disadvantaged as the area would raise far less in business rates than it currently receives as part of a national redistribution of rates.

(2) Council believes that what is needed is a long term solution that delivers a fair funding formula for all local authorities.

(3) Council reminds Cabinet and Chief Officers that the previous coalition administration instructed, at its meeting of 14th April 2011:

• That Officers and Members, as appropriate, undertake detailed work and proactively make representations to influence Government, with the aim of securing a fair and rebalanced funding formula to tackle Wirral’s underlying problems and provide adequate resources for local services.
• That input be made to collective lobbying through bodies such as SIGOMA, LGA, Liverpool City Region, other Councils and representative bodies, as appropriate, to promote the case for equalisation, seeking to ensure that those local authorities with a low income from business rates and a high level of Government grant support are not adversely affected by the proposed repatriation of business rates

(4) Council reminds Cabinet members that this Chamber agreed at its meeting of 18th April 2010 to:

• Request Cabinet to draw together a report to highlight data on Wirral’s underlying social problems, in particular highlighting how Wirral has benefited substantially from the redistribution of the business rates over the years, with the aim of securing a fair and rebalanced funding formula to tackle those underlying problems and provide adequate resources for local services.
• This report be then used as part of a campaign involving SIGOMA, the Local Government Association and other councils in speaking up for local Councils and ensuring the Department for Communities and Local Government specifically understand local needs

(5) Council, therefore, is disappointed that this proactive work, requested with the aim of influencing Government thinking on development of a fair funding formula has not been forthcoming and that too the emphasis needs to shift away from complaining about the Government and towards influencing and improving the Government’s proposals.

(6) Council is further concerned that the current Labour Administration is demonstrating a lack of confidence in their own abilities to stimulate Wirral’s economy and that they would prefer to rely on a system of handouts from Whitehall than to take any responsibility for localised fund raising.

(7) Council welcomes the opportunity for a delegation to meet with Eric Pickles in order to continue to influence Government thinking for the benefit of the people of Wirral in the development of a fair funding formula for local government that is sustainable in the longer term, from which the Council can properly plan the delivery of local services and which properly recognises factors important to Wirral, such as social and economic deprivation.