Agenda item

This Council accepts the necessity of welfare reform but believes any new welfare system must provide fair financial support for both hard working families and the vulnerable people of Leeds. The proposed Tax Credit reforms do not achieve these objectives and in light of this we call on the Chief Executive to write to the Government asking them to abandon them.

It was moved by Councillor Finnigan, seconded by Councillor Golton that this Council accepts the necessity of welfare reform but believes any new welfare system must provide fair financial support for both hard working families and the vulnerable people of Leeds. The proposed Tax Credit reforms do not achieve these objectives and in light of this we call on the Chief Executive to write to the Government asking them to abandon them.

An amendment was moved by Councillor A Blackburn seconded by Councillor D Blackburn

After “This Council” delete “accepts the necessity of welfare reform but”.

Motion would read:

“This Council believes any new welfare system must provide fair financial support for both hard working families and the vulnerable people of Leeds.  The proposed Tax Credit reforms do not achieve these objectives and in light of this we call on the Chief Executive to write to the Government asking them to abandon them.”

A second amendment was moved by Councillor Coupar seconded by Councillor Yeadon,

Delete all after “This Council” and replace with:

“…remains incredibly concerned about the impact on households in Leeds of Government’s plans to remove up to £13billion nationally in support from some of the most vulnerable people by 2020/21. Council is particularly disappointed to learn that the promise to avoid cuts to tax credits has been broken.

This Council has noted analysis by the Institute for Fiscal Studies, the Resolution Foundation and others which demonstrates that tax and wage changes will not offset the shortfall from tax credit cuts in full, particularly with lengthy delays before the minimum wage increase could reach £9 per hour.

Council believes children will suffer the most as a result of this decision given that 77% of in work families claiming tax credits have a household income of less than £20,000 a year, and 83% of those in-work families have at least one child. Locally in Leeds this Council continues to work hard to give children the best start in life but is concerned that Government has decided to withdraw vital support from families working hard for low pay.

Council notes that this Government has failed to achieve its own deficit reduction targets set out in 2010 and the national debt doubled over the last Parliament. In that context, Council does not believe it is the right priority for Government to help the wealthiest 4% of the population to benefit from tax changes, whilst placing the burden of its own failure on hard working families in Leeds. This Council calls on Government to withdraw these damaging cuts and maintain vital support for those who need it in our city. Council asks that the Executive Board member for Communities writes to central government to notify them of this resolution.”

Full motion will then read:

“This Council remains incredibly concerned about the impact on households in Leeds of Government’s plans to remove up to £13billion nationally in support from some of the most vulnerable people by 2020/21. Council is particularly disappointed to learn that the promise to avoid cuts to tax credits has been broken.

This Council has noted analysis by the Institute for Fiscal Studies, the Resolution Foundation and others which demonstrates that tax and wage changes will not offset the shortfall from tax credit cuts in full, particularly with lengthy delays before the minimum wage increase could reach £9 per hour.

Council believes children will suffer the most as a result of this decision given that 77% of in work families claiming tax credits have a household income of less than £20,000 a year, and 83% of those in-work families have at least one child. Locally in Leeds this Council continues to work hard to give children the best start in life but is concerned that Government has decided to withdraw vital support from families working hard for low pay.

Council notes that this Government has failed to achieve its own deficit reduction targets set out in 2010 and the national debt doubled over the last Parliament. In that context, Council does not believe it is the right priority for Government to help the wealthiest 4% of the population to benefit from tax changes, whilst placing the burden of its own failure on hard working families in Leeds. This Council calls on Government to withdraw these damaging cuts and maintain vital support for those who need it in our city. Council asks that the Executive Board member for Communities writes to central government to notify them of this resolution.”

A third amendment was moved by Councillor Lamb seconded by Councillor Buckley

Delete all after “vulnerable people of Leeds” and replace with:

“Council calls on the Government to urgently spell out the measures that will help affected families in the transition to the new welfare system, whilst also achieving reforms to tax credits and ensuring economic stability.”

Amended motion would read as follows:

“This Council accepts the necessity of welfare reform but believes any new welfare system must provide fair financial support for both hard working families and the vulnerable people of Leeds. Council calls on the Government to urgently spell out the measures that will help affected families in the transition to the new welfare system, whilst also achieving reforms to tax credits and ensuring economic stability.”

The amendments in the name of Councillor A Blackburn and Councillor Lamb were declared lost.

The amendment in the name of Councillor Coupar was carried and upon being put to the vote it was;

RESOLVED – That this Council remains incredibly concerned about the impact on households in Leeds of Government’s plans to remove up to £13billion nationally in support from some of the most vulnerable people by 2020/21. Council is particularly disappointed to learn that the promise to avoid cuts to tax credits has been broken.

This Council has noted analysis by the Institute for Fiscal Studies, the Resolution Foundation and others which demonstrates that tax and wage changes will not offset the shortfall from tax credit cuts in full, particularly with lengthy delays before the minimum wage increase could reach £9 per hour.

Council believes children will suffer the most as a result of this decision given that 77% of in work families claiming tax credits have a household income of less than £20,000 a year, and 83% of those in-work families have at least one child. Locally in Leeds this Council continues to work hard to give children the best start in life but is concerned that Government has decided to withdraw vital support from families working hard for low pay.

Council notes that this Government has failed to achieve its own deficit reduction targets set out in 2010 and the national debt doubled over the last Parliament. In that context, Council does not believe it is the right priority for Government to help the wealthiest 4% of the population to benefit from tax changes, whilst placing the burden of its own failure on hard working families in Leeds. This Council calls on Government to withdraw these damaging cuts and maintain vital support for those who need it in our city. Council asks that the Executive Board member for Communities writes to central government to notify them of this resolution.