To consider the following Notice of Motion, which has been submitted by Cllr G.B. Lyon pursuant to Standing Order 9 (1):
“As a result of the UK Government Budget, Employer National Insurance
contributions from April will increase from 13.8% to 15% - a tax increase for
employers of almost 9%.
The threshold will also reduce from £9,100 to £5,000.
The OBR notes that ‘firms will pass on 60% of the higher costs to workers and consumers, via lower wages and higher prices’.
That many local services, including nurseries, hospices, care homes and charities will be hit by these huge tax increases in addition to many businesses of all sizes in Rushmoor.
This Council also notes the dire impact on Rushmoor's own finances which will come at the cost of local services and will lead to higher costs when dealing with contractors.
This Council resolves to:
Request Cabinet to establish a working group to work with local businesses to produce plans to support the local economy to combat the impact of these tax increases to report back to Council within 6 months.
To record our disappointment regarding the National Insurance increases and their damaging impact on all who live and work in Rushmoor.
To request the Leader to write to the Chancellor of the Exchequer to ask her to reconsider the changes.”
Minutes:
The Council were asked to consider a Notice of Motion
submitted by Cllr G.B. Lyon under Standing Order 9 (1) on Employer National
Insurance Contributions and the Local Economy, as set out below:
“As a result of the UK Government Budget, Employer National
Insurance contributions from April will increase from 13.8% to 15% - a tax
increase for employers of almost 9%.
The threshold will also reduce from £9,100 to £5,000.
The OBR notes that ‘firms will pass on 60% of the higher
costs to workers and consumers, via lower wages and higher prices’.
That many local services, including nurseries, hospices,
care homes and charities will be hit by these huge tax increases in addition to
many businesses of all sizes in Rushmoor.
This Council also notes the dire impact on Rushmoor's own
finances which will come at the cost of local services and will lead to higher
costs when dealing with contractors.
This Council resolves to:
Request Cabinet to establish a working group to work with
local businesses to produce plans to support the local economy to combat the
impact of these tax increases to report back to Council within 6 months.
To record our disappointment regarding the National
Insurance increases and their damaging impact on all who live and work in
Rushmoor.
To request the Leader to write to the Chancellor of
the Exchequer to ask her to reconsider the changes.”
In PROPOSING the Motion, Cllr Lyon referred to the changes
as a tax on working people as increased employer costs would be passed on to
employees, and described the financial impacts which would affect local
businesses and retail, including small businesses which would be pulled into
the tax threshold, nurseries, hospitals and the Council itself. He stressed the
importance of engaging with, and supporting, struggling local businesses, and
requested a letter to the Government highlighting the risks and impacts for the
local economy and requesting the tax increases be reconsidered. In SECONDING
the Motion, Cllr P.G. Taylor highlighted the impacts for businesses, young
people, casual workers and the self-employed.
During discussion, the point was made that funding was
needed to support front line public services such as the National Health
Service and reduced waiting lists, and that the Council was unable to control
the setting of National Insurance Contributions. The Council held
well-established connections with the local business community through multiple
forums, regular business engagement events and portfolio holder and leader
relationships and therefore a further working group would not be necessary to
achieve a business support connection.
The Motion was put to the meeting. In a recorded vote there voted FOR: Cllrs A. Adeola, C.W. Card, Leola Card, Sue Carter, P.J. Cullum, A. Gani, Peace Essien-Igodifo, G.B. Lyon, T.W. Mitchell, P.G. Taylor and Jacqui Vosper (11) AGAINST: Cllrs Abe Allen, A.H. Crawford, Jules Crossley, Thomas Day, Keith Dibble, C.P. Grattan, Lisa Greenway, Christine Guinness, Rhian Jones, Halleh Koohestani, Bill O’Donovan, Sophie Porter, M.J Roberts, Dhan Sarki, Sarah Spall, Ivan Whitmee, Becky Williams and Gareth Williams (18) ABSTAIN: The Deputy Mayor (Cllr Calum Stewart) and The Mayor (Cllr Mara Makunura) (2) and the Motion was DECLARED LOST.