Agenda item

PROPOSED BY:     CLLR LEONORA THOMSON

SECONDED BY:     CLLR  JESS MOULTRIE

This Council deplores the economic chaos wrought by the Chancellor’s September ‘mini-budget’ which resulted in

·         Sterling crashing to its lowest ever value against the dollar, pushing up the cost of imports

·         Interest rate rises and the withdrawal of hundreds of mortgage products

·         Liquidity threats to several major pension schemes, prompting a multi-billion, taxpayer-backed, Bond buy by the Bank of England to “restore market functioning”

all of which directly worsened the already significant impact of the Cost of Living Crisis on Cardiff residents.

The Council notes with concern that the ‘mini-budget’ provided no new support for public services, and further notes that the subsequent decision to postpone the Spending Review will result in a significant real-terms cut to Council budgets, at a time when we are dealing with both unprecedented inflationary pressures and a surge in demand for services, noting as well that £300 million has already been cut from this Council’s budget as a result of a decade of austerity.

In particular, the Council expresses extreme concern that the budget gap facing the Council in the next financial year now stands at £53 million, and will result in deep cuts unless the UK Government commits to properly funding public services in all 4 nations.

The Council welcomes the work Cardiff Council is undertaking to best support residents at this challenging time - including establishing warm spaces in our hubs, strengthening money advice and into work services, expanding support to help homelessness,  and the establishment of a Cost of Living Taskforce to co-ordinate help with other partners - but also recognises that even more help will be needed if the UK Government fails (as threatened) to increase benefits in line with inflation.

The Council resolves

·         To declare a Cost of Living emergency in recognition of the unprecedented financial pressures facing residents and Council services

·         To promote and publicise the support the Council and partners are offering in response to the crisis

·         To condemn the Government’s recent mishandling of the UK economy, and to call on the Prime Minister and Chancellor to properly fund Public Services including Councils

·         To support the principle that those most able to pay – whether individuals or corporations -  should shoulder the greatest burden in responding to the Cost of Living Crisis and balancing the nations’ finances

·         To request Cabinet provide the Council with a regular updates as to the impact of the Cost of Living crisis on the delivery of Council services, and on our work to help the most vulnerable in our City