Agenda item

Non Cabinet Members' Debate

To enable Non Cabinet Members to raise an issue of relevance to Brent for debate on which notice has been provided in accordance with Standing Order 34 and to receive reports from Cabinet members, as required, on any issues previously raised.

Members are asked to note that the subject identified for debate at this meeting is as follows:

Leaving No One Behind: Declaring a Cost-of-Living Emergency

The motion put forward as the basis for this debate has been attached.

Decision:

Having declared the following amendment moved by on behalf of the Liberal Democrats Group LOST:

To add as additional actions under the following section:

“This Council therefore resolves:

· To reinstate the upgrading of the Personal Tax Allowance and the basic rate tax band with inflation to avoid lower paid people falling into the tax net.

· To reinstate the £20 pw Universal Credit payment to those on low incomes.

· To introduce a Windfall Tax on Supermarkets making exceptional profits as a result of rising prices.

· To resolve the issue of Fair Funding for London Transport to avoid further cuts in public transport and above inflation rises in fares.”

To add as additional actions at the end of the motion:

“As part of the Review into what the Council can do specifically:

· To consider the use of Reserves (such as the £5.2 million no longer required for meeting past London wide Pension liabilities) to mitigate a 2023/24 Council Tax Rise.

· To look at all Council Charges such Parking Permits, Toobig for the bin, Green bin collections and others with a view to reducing any which are generating income beyond the economic cost of providing the service.

· To provide additional resources to those Advice agencies which provide direct advice and support to residents in managing their debts, which assist residents in claiming additional benefits such as pension Credit and those which advise on how to reduce the use of their cars through more walking, cycling and use of public transport and reduce their domestic energy costs by switching of unnecessary appliances and gadgets.

Finally:

The Council also agrees to suspend free parking for Councillors (except those registered as disabled) using the Civic Centre Car Park and allocates all additional income generated from freeing up paid for parking spaces to a fund to assist local residents in most need.”

The following substantive motion was AGREED as the outcome of the non-cabinet member debate:

Leaving No One Behind: Declaring a Cost-of-Living Emergency

This Council notes:

That Brent and its residents are struggling due to the cost-of-living crisis. For many residents this will have been the most difficult decade they have ever experienced.

In April 2022, the Government increased National Insurance by 1.25%; this is projected to cost the average Brent resident an additional £295 per year.

On 1 April 2022 Ofgem increased the energy price cap by 54 per cent, with the average standard tariff energy bill set to increase by up to £693 per year.

Inflation is now confirmed at 9% with the fastest rate of increase for 40 years. Inflation has been higher in London than the national average.

In the meantime, at least 25% of the people who work in Brent earn less than the real Living Wage for London.

The LGA estimates that without adequate long-term funding the collective increase in inflationary costs faced by English councils this year will be £2.4bn, growing to £3bn in 2023-24 and £3.6bn in 2024-25.

Local councils up and down the country are the last line of defence in supporting residents during the cost of living crisis.

Figures show that over 5,000 residents presented at Brent Hubs in need of food aid between April 2019 to January 2022.

Between December 2020 and March 2022, the Council distributed £5.5m through grants to Brent residents, supporting the families of approximately 12,000 eligible children and young people with supermarket vouchers during each of the school holidays.

The Brent Resident Support Fund (RSF), has been in place since August 2020: it has supported 2,658 applicants with a total of £5.2 million in cash grants.

This Council believes:

Many of the services we all rely on are in a state of managed decline, starved of sustainable funding.

Inflation is not going to come down overnight and the impact on our local services could be disastrous. In Brent, our council has already cut nearly £200m from our budget, severely curtailing the services offered to residents.

In our local NHS Trust there are over 50k residents on the waiting list for care.

Residents are seeing tax hikes, energy bills soaring and petrol and food prices rising drastically.

Beneath the cost of living crisis, there is a mounting mental health crisis and a housing crisis that never went away.

The average home in Brent costs more than 16 times the average annual salary in the area, 9 times above the English average.

Given the seriousness of the situation this council believes it should speak with one voice to those in power and raise the alarm on behalf of residents across each and every one of our 22 wards and declare a “Cost of Living Emergency”.

This Council therefore resolves:

To declare a “Cost of Living Emergency”.

As part of this, to call on the Government to take the following practical steps in order to help our resident’s incomes stretch further.

· To stabilise the foundations of our economy by providing emergency support for business, reducing their costs and limiting the price rises they pass on to consumers.

· To reverse the planned increases to National Insurance, protect our residents by reducing the burden of VAT on everyday goods; and increase welfare support in-line with the rate of inflation.

· To immediately use revenue from a windfall tax on oil and gas producers to help Brent families with their energy bills.

· To provide security for the winter and beyond by providing the financial support necessary to retrofit and insulate homes, while looking to the future with commitments to utilise more renewable sources of energy in the National Grid.

· To put in place a longer-term approach to economic growth and security, under-pinned by an industrial strategy. “This Council notes:

To conduct a full review into what the council can offer Brent families struggling with the cost of living emergency and ensure that the voice of local people is at the centre of its response.”

Minutes:

In accordance with Standing Order 34, the Mayor advised that the next item on the agenda was the non-cabinet member debate, with the subject chosen for consideration being the declaration of a cost of living emergency.

Members were advised that the motion submitted as the basis for the debate had been circulated with the agenda and that the time available for the debate was 25 minutes.

The Mayor then invited Councillor Moeen to introduce the motion. As context for the debate, Councillor Moeen highlighted the challenges that Brent and its residents were facing due to the cost-of-living crisis. Increases in National Insurance contributions, inflation and projected energy costs had already begun to impact on the Council’s budgetary position and resident’s household income with the position only predicted to worsen. In highlighting the essential role provided by local authorities and other public sector agencies in supporting residents during the current crisis, Councillor Moeen felt it important to recognise the struggles already being experienced by residents across Brent with at least 25% of those in work earning less than the real Living Wage for London. In addition, figures demonstrated that over 5,000 residents had presented at Brent Hubs in need of food aid between April 2019 to January 2022 with the Council, between December 2020 and March 2022, having distributed £5.5m through grants to Brent residents, supporting the families of approximately 12,000 eligible children and young people with supermarket vouchers during each of the school holidays. Since August 2020 members were reminded that the Brent Resident Support Fund (RSF) had also provided support for 2,658 applicants allocating a total of £5.2 million in cash grants.

Councillor Moeen expressed concern that given the lack of sustained funding from central government to support local authorities and other public services and the drastic increase in fuel, tax and food costs alongside the ongoing demand in relation to housing and health services there would undoubtedly be a detrimental impact upon residents. In recognition of the seriousness of the situation, Councillor Moeen urged members to support the council in challenging central government to act on the suggested initiatives detailed in the motion and in declaring a cost of living emergency in order to enable the necessary practical support to be provided for local residents during such challenging times.

The Mayor thanked Councillor Moeen for introducing the motion and then drew member’s attention to an amendment submitted by Councillor Georgiou on behalf of the Liberal Democrat Group in relation to the motion moved as the basis of the debate, which had been circulated in advance of the meeting.

Having been invited to move the amendment, Councillor Georgiou advised that Councillor Lorber would be speaking on behalf of the Liberal Democrat Group.

In moving the amendment Councillor Lorber advised that whilst the Liberal Democrat Group fully supported the need for urgent action to be taken in addressing the Cost of Living crisis by the Government, especially in relation to energy prices, he felt there was also a need for the Council to review its own level of fees and charges and use of reserves and contingencies alongside the increase in level of Council Tax which had been set. On this basis he advised that the amendment being moved by the Liberal Democrat Group was as follows:

To add as additional actions under the following section of the original motion:

“This Council therefore resolves:

· To reinstate the upgrading of the Personal Tax Allowance and the basic rate tax band with inflation to avoid lower paid people falling into the tax net.

· To reinstate the £20 pw Universal Credit payment to those on low incomes.

· To introduce a Windfall Tax on Supermarkets making exceptional profits as a result of rising prices.

· To resolve the issue of Fair Funding for London Transport to avoid further cuts in public transport and above inflation rises in fares.”

To add as additional actions at the end of the original motion:

“As part of the Review into what the Council can do specifically:

· To consider the use of Reserves (such as the £5.2 million no longer required for meeting past London wide Pension liabilities) to mitigate a 2023/24 Council Tax Rise.

Finally:

The Mayor thanked Councillor Lorber for moving the amendment on behalf of the Liberal Democrats Group and then opened the debate for contributions from other members.

Councillor Mitchell in expressing her support for the motion shared concern at the strain being placed on local residents as a result of the crisis forcing them to make difficult choices regarding their household income including, in many cases whether they were able to heat their home or buy food. It was felt that the continued lack of adequate public funding from central government had exacerbated the impact felt by residents, who were having to deal with rising costs alongside changes in welfare benefits and for many what amounted to a real term reduction in wages as a result of the increasing rate on inflation. Highlighting the particular impact on more vulnerable residents, it was felt the current pressures would only serve to exacerbate existing levels of inequality within society. As an example reference was made to the increased use of energy by 85% of families with disabled children and the disproportionate impact of the crisis on BAME communities and families. In summing up Councillor Mitchell hoped that all members would support the actions identified in order to effect positive change.

Councillor Jayanti Patel, whilst acknowledging the challenging times faced by residents also felt it important to highlight the global factors impacting on the current situation and action being taken by the Government to ease the burden and provide a package of significant financial support. This was both in terms of one off support in relation to energy bills for all households and more targeted support for those on lower incomes alongside the change in National Insurance thresholds and wider package of proposed tax relief.

Councillor Afzal, in supporting the motion shared his disappointment at the response to the crisis by the government to date. Highlighting the need for a more progressive tax system he felt more needed to be done, as part of the wider response by Government, to ensure a fairer distribution of wealth, properly fund public services and restrict any future increase in the energy price caps taking account of the additional profits being generated by large energy corporations as a result of the increase in energy prices.

Councillor Georgiou also took the opportunity to highlight the extent of the difficulties and challenges faced by so many local residents and range of factors involved in the current crisis which he felt supported the need to declare a cost of living emergency as he pointed out Eastbourne (under liberal Democrat control) had been the first local authority to do. In support of the amendment moved, Councillor Georgiou felt it was important, alongside the action needing to be taken by the Government, to also consider what additional measures the Council could take in an attempt to mitigate the impact of the current crisis. This included seeking to maximise the allocation of additional resources to support advice services that worked directly with those residents most in need and to consider removing free parking for councillors at the Civic Centre in order to generate additional resources that could be used to support residents most in need, whilst also encouraging greater use of public transport.

As there were no further contributions, the Mayor then invited Councillor Muhammed Butt, as Leader of the Council, to summarise and close the debate.

Councillor Muhammed Butt began by thanking Councillor Moeen for raising such an important issue for debate given the significant impact of the Cost of Living crisis on local residents as well as the Council. In addressing the amendment moved by the Liberal Democrat Group, Councillor Muhammed Butt felt it was important to highlight the financially prudent and sustainable approach adopted by the Administration in terms of managing use of the Council’s limited resources alongside the direct and ongoing support already being delivered for those residents most in need, as evidenced through the ongoing support being provided by the Resident Support Fund, Council Tax Support Scheme and Community Hubs. In closing he urged all members to support the original motion moved as the basis of the debate, recognising the sensible and prudent approach adopted by the current Administration in relation to management of the Council’s finances as opposed to the approach outlined in the amendment.

The Mayor thanked all members for their contributions and then moved on to put the amendment moved by the Liberal Democrat Group to the vote prior to seeking approval on the final substantive motion as an outcome of the non-cabinet member debate.

On being put to the vote the amendment moved by the Liberal Democrats Group (as set out above) was declared LOST:

As a result, the following substantive motion was put to the vote and AGREED as the outcome of the non-cabinet member debate:

“Leaving No One Behind: Declaring a Cost-of-Living Emergency