Agenda item

This 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 crisis because of the war in Ukraine.

The independent Office for Budget Responsibly (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 five years;

·  reduce real household disposable income by 2029;

·  raise the bank rate and five-year gilt yield higher than forecast; and

·  cut wages by £7.5 bn as a result of a hike in employers’ national insurance.

 

This Council rejects the Chancellor’s tax on jobs, which will hit businesses in Leeds. 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.

 

It was moved by Councillor Lamb, seconded by Councillor N Buckley that this 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 crisis because of the war in Ukraine.

The independent Office for Budget Responsibly (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 five years;

·  reduce real household disposable income by 2029;

·  raise the bank rate and five-year gilt yield higher than forecast; and

·  cut wages by £7.5 bn as a result of a hike in employers’ national insurance.

 

This Council rejects the Chancellor’s tax on jobs, which will hit businesses in Leeds. 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.

 

An amendment was moved by Councillor Dobson, seconded by Councillor Dixon

 

After the penultimate paragraph insert the following:

 

Further, this Council recognises the vital role GP services and primary care plays in reducing pressure on NHS A&E in Leeds and in the improvement of health outcomes, and Council is therefore alarmed that the Labour Government has progressed a budget that will result in a cut in funding for GP services as a result of the unfunded NI rise. 

 

The Amended White Paper would then read:

 

This 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 crisis because of the war in Ukraine.

The independent Office for Budget Responsibly (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 five years;

·  reduce real household disposable income by 2029;

·  raise the bank rate and five-year gilt yield higher than forecast; and

·  cut wages by £7.5 bn as a result of a hike in employers’ national insurance.

 

This Council rejects the Chancellor’s tax on jobs, which will hit businesses in Leeds. 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”.

 

Further, this Council recognises the vital role GP services and primary care plays in reducing pressure on NHS A&E in Leeds and in the improvement of health  outcomes, and Council is therefore alarmed that the Labour Government has progressed a budget that will result in a cut in funding for GP practices, pharmacies and hospices as a result of the unfunded NI rise. 

 

Council believes this budget is a tax on working people.

 

A second amendment was moved by Councillor Campbell, seconded by Councillor Downes

 

Delete all of the first paragraph after “This Council notes” and have the current second paragraph follow on immediately after “notes”.

 

Insert “and the Chancellor’s” after “(OBR)”.

 

Delete the entire paragraph starting “This Council rejects”.

 

Insert the following final paragraph: “Council therefore calls on the administration to use what influence it has with the Chancellor to ask her to bring forward a range of measures to reduce the tax burden on those with low income starting with a raising of the threshold at which tax is paid in line with inflation.”

 

The amended White Paper would thus read:

 

 

“This Council notes the independent Office for Budget Responsibly (OBR) and the Chancellor’s 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 five years;

•  reduce real household disposable income by 2029;

•  raise the bank rate and five-year gilt yield higher than forecast; and

•  cut wages by £7.5 bn as a result of a hike in employers’ national insurance.

 

Council believes this budget is a tax on working people.

 

Council therefore calls on the administration to use what influence it has with the Chancellor to ask her to bring forward a range of measures to reduce the tax burden on those with low income starting with a raising of the threshold at which tax is paid in line with inflation.”

 

A third amendment was moved by Councillor Blackburn, seconded by Councillor M Ali

 

Delete all between “This Council notes” and “This Council rejects” and replace with:

 

“that in the recent budget the Chancellor has done nothing to end the age of austerity, and little to encourage the green economy or deal with climate change.

 

Further the budget is unlikely to help with the financial position of this council or help to address the cuts in living standards of many citizens in Leeds”.

 

The amended White Paper would then read:

 

“This Council notes that in the recent budget the Chancellor has done nothing to end the age of austerity, and little to encourage the green economy or deal with climate change.

 

Further the budget is unlikely to help with the financial position of this council or help to address the cuts in living standards of many citizens in Leeds.

 

This Council rejects the Chancellor’s tax on jobs, which will hit businesses in Leeds. 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.”

 

The amendments in the name of Councillor Dobson, Councillor Campbell and Councillor Blackburn were declared lost and upon being put to the vote the motion in the name of Councillor Lamb was also declared lost.