In accordance with Standing Orders, the following motions have been received for consideration:
(i) Labour Government Budget
To be moved by Councillor Roopchand and seconded by Councillor Woods
On Wednesday 30th October, Chancellor of the Exchequer Rt Hon Rachel Reeves MP delivered a Labour Government Budget for the first time in 14 years. With a strong mandate from the electorate in July, including 17,698 voters in Stevenage, the Chancellor vowed to restore stability to our economy and to begin a decade of national renewal, to fix the foundations and deliver change through responsible leadership in the national interest.
Council notes the significance of having the first female Chancellor in history deliver the budget, and what that signifies to young women and girls across the UK about unlocking opportunities and aspirations.
Council believes this is the first budget in 14 years to truly back the ambitions of Stevenage, from supporting residents with the cost of living to building affordable homes to supporting local industry to investing in key services such as health, education and transport.
The budget restored economic stability, plugging the devastating £22 billion black hole left behind by successive previous administrations whilst not raising a single tax on workers pay packets. Council notes this strong approach to fiscal responsibility is projected to lead to consistently low inflation and high growth which we will all benefit from.
Council supports the increase in the minimum wage that puts an extra £1,400 into the pockets of the lowest paid full-time workers, the freezing of fuel duty, £500 million investment into fixing potholes, £5 billion allocated to build new affordable homes, the largest increase in the carers allowance since its inception and the commitment to the triple lock on pensions which will lead to a £470 increase next year.
Council recognises that the £1.3 billion invested into local government marks a clear turning point from an era of austerity where councils will finally be given the funds needed to properly run services and support communities.
Council endorses the £22.6 billion increase to the healthcare budget, £6.7 billion increase to the education budget, £1 billion uplift for SEND provision and £650 million allocation for public transport as decisions that demonstrate the Government's commitment to deliver on its promises to fix the foundations of our broken public services.
Lastly, Council celebrates the wide ranging support the budget gave to sectors that are prominent in Stevenage, namely £2.9 billion more for the defence sector, £1 billion for the aerospace industry, £2 billion for the automotive industry, £520 million for the life sciences sector and £6.1 billion for the medical sector.
Overall, this was a budget that comprehensively delivered for working people whilst starting to repair 14 years of economic ruin.
Council resolves to:
Endorse the Chancellor’s Autumn Budget and recognise it as a critical step toward economic recovery, growth, stronger services and national prosperity for all.
Encourage the Leader of the Council Richard Henry and Kevin Bonavia MP to continue working collaboratively to achieve positive outcomes for Stevenage at a local and national level.
(ii) Labour Government Budget
To be moved by Councillor Phil Bibby
The Council notes
that the labour Government inherited the fastest growing economy in
the G7, with mortgage interest rates falling and inflation back to
the Bank of England target, after the impact of the COVID pandemic
and the energy price crises because of the war in
Ukraine.
The independent Office for Budget Responsibility (OBR) forecasts that growth will now be lower, inflation will rise and mortgage interest rates will increase as a result of the Chancellor’s budget on 30 October.
The OBR also
forecasts that the policies in the budget directly:
· Increase tax take to an historic high at 38 per cent of GDP by 2029/30;
· Lower medium-term GDP growth to 1.5 per cent;
· Push up CPI inflation, projected to rise to 2.6 per cent by 2025;
· Increase borrowing by £19.6 bn this year and by £32.3 bn over the next 5 years;
· Reduce real household disposable income by 2029;
· Raise the bank rate and 5 year gilt yield higher than forecast; and
· Cut wages by £7.5 bn as a result of a hike in employers’ national insurance.
The council rejects the Chancellor’s tax on jobs, which will hit businesses workers in Stevenage. According to the OBR, “policy changes leave nominal and real earnings growth lower over the remainder of the forecast, as employers pass on the national insurance contribution rise.” The OBR further notes, “in 2025/26 firms will pass on 60 per cent of the higher costs to workers and consumers, via lower wages and higher prices.”
Council believes this budget is a tax on working people.