Agenda item

Councillor V Anderson moved the following motion:

“This Council notes that:

·        On 1 April 2022, Ofgem increased the energy price cap by 54 per cent.

·        In light of the increase energy price cap, the average standard tariff energy bill will increase by £693 per year. The average pre-pay meter energy bill will increase by £708 per year (Ofgem, 2022).

·        On 6 April 2022, the Government increase National Insurance by 1.25 percentage points, which is projected to cost the average family in Gateshead an additional £600 a year.

·        The Government has suspended the pensions ‘triple lock’ for 2022/3, meaning Gateshead’s pensioners will see a rise of 3.1 per cent this year (instead of 8.3 percent under the triple lock formula). This year, this will cost pensioners in Gateshead hundreds of pounds.

·        Between April 2020 and March 2022 Gateshead Foodbanks distributed 17,972 food parcels (Trussell Trust, 2022)

This Council therefore declares a ‘Cost of Living Emergency’ and calls on the Government to:

·        Immediately reduce the standard rate of VAT from 20 per cent to 17.5 per cent for one year, saving the average household in Gateshead a further £600 this year.

·        Immediately re-introduce the pensions triple lock to support Gateshead’s pensioners.

·        Immediately restore the Universal Credit supplement of £20, which was cancelled by the Government in September 2021.

Council instructs the Chief Executive to write to the Secretary of State for Work and Pensions to express the Council’s demands for VAT to be cut to 17.5%, for the re-introduction of the pensions triple-lock and for the £20 Universal Credit supplement to be restored.

Finally, Council calls for a local Cost-of-Living Emergency Summit, with stakeholders, including Citizen’s Advice, Food Banks, Local Trade Unions, and Chambers of Commerce and will invite local MPs to attend this hybrid meeting.”

In accordance with Council procedure, paragraph 17.6 of the Constitution, Council consented to the moving of the following amendment:

Insert the following bullet points at the start of paragraph 1.

·        Inflation is running at its highest level for over 40 years (OBR).

·        Two in five children living in Gateshead live in poverty, more than half of these children are in working families (North East Child Poverty commission).

·        Between April 2020 and March 2022 Gateshead Foodbanks distributed 17,972 food parcels (Trussell Trust).

Delete from “This Council therefore declares…”

Replace with the following:

“This Council recognises that all this constitutes an emergency for many, and we already have a great record of responding to the needs of the whole community through existing strategies and structures, such as the Thrive Agenda, the Poverty Strategy and Board and the Health and Well-being Strategy and Board.

However, we believe there is more the Government can do to address these issues:

·        Introduce a windfall tax on energy companies.

·        Reverse the national insurance increases.

·        Cut VAT.

·        Re-introduce the pensions triple lock to support Gateshead’s pensioners.

·        Increase Universal Credit.

·        End the cap on Child Benefit which is only paid for two children in a family.

·        Extend free school meals entitlement to all children whose families are on state benefits, whether working or not.

We call on the Chief Executive of the Council to ensure that Government are aware of our views and that the Gateshead MPs are asked for their support.

The amendment was accepted by the mover of the original motion and therefore put as the substantive motion and duly carried.

COUNCIL RESOLVED           -

This Council notes that:

·        Inflation is running at its highest level for over 40 years (OBR).

·        Two in five children living in Gateshead live in poverty, more than half of these children are in working families (North East Child Poverty commission).

·        Between April 2020 and March 2022 Gateshead Foodbanks distributed 17,972 food parcels (Trussell Trust).

·        On 1 April 2022, Ofgem increased the energy price cap by 54 per cent.

·        In light of the increase energy price cap, the average standard tariff energy bill will increase by £693 per year. The average pre-pay meter energy bill will increase by £708 per year (Ofgem, 2022).

·        On 6 April 2022, the Government increase National Insurance by 1.25 percentage points, which is projected to cost the average family in Gateshead an additional £600 a year.

·        The Government has suspended the pensions ‘triple lock’ for 2022/3, meaning Gateshead’s pensioners will see a rise of 3.1 per cent this year (instead of 8.3 percent under the triple lock formula). This year, this will cost pensioners in Gateshead hundreds of pounds.

This Council recognises that all this constitutes an emergency for many, and we already have a great record of responding to the needs of the whole community through existing strategies and structures, such as the Thrive Agenda, the Poverty Strategy and Board and the Health and Well-being Strategy and Board.

However, we believe there is more the Government can do to address these issues:

·        Introduce a windfall tax on energy companies.

·        Reverse the national insurance increases.

·        Cut VAT.

·        Re-introduce the pensions triple lock to support Gateshead’s pensioners.

·        Increase Universal Credit.

·        End the cap on Child Benefit which is only paid for two children in a family.

·        Extend free school meals entitlement to all children whose families are on state benefits, whether working or not.

We call on the Chief Executive of the Council to ensure that Government are aware of our views and that the Gateshead MPs are asked for their support.