The Council has decided to support a Wealth Tax to fund public services, encourage local spending to support businesses, and show solidarity with Ukraine.

URL: https://calderdale.moderngov.co.uk/ieDecisionDetails.aspx?ID=330

Decision Maker: Council

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose:

Content: (A)   Supporting a Wealth Tax to fund Public Services   The Mayor advised that a Motion had been received from the Green Group regarding Supporting a Wealth Tax to fund Public Services.  The Mayor further advised that amendments had been received from the Liberal Democrat Group and Labour Group which had been circulated to the full membership of the Council prior to the meeting. On receipt of the amendments the Green Group, after due consideration, amended their original Motion to incorporate Liberal Democrat and Labour Amendments.   The Mayor asked Councillor M Hey if both himself and Councillor Wood were happy to propose and second the incorporation of the Liberal Democrat and Labour Amendments into the Green Motion.  After being put to the vote the incorporation of the amendments into the original motion was carried.   It was moved by Councillor M Hey, Seconded by Councillor Wood, and   RESOLVED that:   This Council notes:   The financial crisis in local government is becoming critical - and Calderdale is far from immune from the storm about to hit. Local Government spending power has fallen by 45% in real terms since 2010 and our Borough may suffer further cuts following the Chancellor’s Spring Statement. We’re at the stage where without additional investment this council risks not being able to deliver the crucial services that so many in Calderdale depend on.   Our Council is central to the provision of Adult Care and Children Services in the Borough. Over time, the percentage of council spend that is attributable to these activities has risen, reflecting both our statutory duties and our determination to help those most in need. We're at the point now where further funding cuts will jeopardise our ability to fulfil these obligations - or alternatively they may simply push the council into a financially unsustainable position.   There’s also been reductions in frontline services relied upon by all residents over the last 15 years, which has led to a growing disconnect between the council and its residents. Many people ask where their council tax is going, given the limited services they see on a day-to-day basis. Without the support of its residents, our legitimacy will be questioned, again an existential threat to our organisation.   Our situation in local government is mirrored by cuts in other unprotected areas of national government, with areas such as Justice and Housing particularly hard hit. Enforcement of environmental standards and health and safety directives has been progressively weakened and feed powerfully into a narrative that things in Britain are unfair and the rules are set up to benefit the wealthy.   Indeed, we note that extreme levels of wealth inequality exist in Great Britain, with the wealthiest 10% estimated to hold around half of all wealth.  In 2020, the net wealth of the richest 10% of the population in Great Britain was over £1.5 million per household, with the bottom 40% of households having little or no net wealth. Almost all gains in financial wealth over the last 20 years have come from changes in asset prices rather than additional saving, which naturally means that any additional wealth accrues to those who are already wealthy.  Returns for the top 10% of households can be anything up to 10 times higher than those experienced at the bottom of the wealth distribution.   This Council believes:   ·            That the consequences of the ongoing multi-year austerity programme are clear, with:   ·        the number of people in receipt of health-related benefits having risen by 45% since 2020: ·        2.8 million people now having long term illnesses and disabilities that prevent them from working ·        and one in eight young people not in education, work or training.   ·           We believe these dismal statistics demand urgent solutions and we recognise that increasing reliance on disability benefits, including Personal Independence Payments, is symptomatic of failures to adequately fund the NHS, Social Care, Social Housing, along with inflation and static real-terms wages. Addressing these root causes is key.   ·           Everyone deserves to live a good life.  Further cuts are not the way to reverse the trend of falling living standards. The call to end austerity is now coming from all quarters - last month a group of leading economists wrote to the Financial Times warning it would be a profound mistake for ministers to cut spending and investment - stressing that the UK cannot cut its way to growth.   ·           Wealth Taxes would be the most equitable way to reduce national, regional and local inequality – it won’t be easy, but is necessary to end poverty, improve healthcare, education, housing and social care. We estimate that by the end of the next Parliament the introduction of a Wealth Tax, along with equalising taxes on investment and labour, could raise additional revenue of between £50 and £70bn per year in 2024 prices.   This Council Resolves:   ·           To ask the Chief Executive to write to the Prime Minister and the Chancellor asking them to consider the introduction of a National Wealth Tax on the richest 1%as part of a full review during this Parliament of other possible wealth and property taxes such as a Land Tax and including the existing Capital Gains and Inheritance Taxes. This Review should include options for reform of Council Tax, an unfair and regressive property tax which is not tied to ownership - to bring the era of austerity to a close in the UK, thus ensuring the financial wellbeing of everyone in Calderdale. ·           To increase funding to and instruct HMRC and the Office of National Statistics (ONS) to collect better data on high wealth individuals to help inform policymaking, with a particular focus on how the wealth taxes could alleviate poverty fairly across the UK. ·           Asks the Chief Executive and the Leader of the Council to write to Calderdale’s two Members of Parliament seeking their support for the actions outlined in this motion.   (B)   Support Local Businesses   It was moved by Councillor Courtney, Seconded by Councillor Veitch,   After being put to the vote, the Amended Motion was carried.   RESOLVED that:   This Council notes that:   ·        Local businesses are at the backbone of our communities, providing jobs, services, and contributing to the local economy. ·        Encouraging local residents and the Council to spend locally would help to support businesses, boost economic growth, and retain wealth within Calderdale. ·        Calderdale Council has a responsibility to ensure that its spending benefits local businesses where possible. ·        Last year, the Council spent over £100,000 at online retailers through the use of Council credit cards - this money could be better spent in the local economy. ·        40% of Purchase Card spend in 2024/5 was with businesses in Calderdale. YPO have confirmed that in 2023/4 Calderdale Council spent £2.3M directly with Calderdale businesses.   This Council thanks:   ·        Council Officers, local Business Improvement Districts, the Mid Yorkshire Chamber of Commerce, the Federation of Small Businesses, and other pro-Business Groups, who work incredibly hard to support and promote local businesses. ·        Council Officers who have successfully secured funding from Central Government and the West Yorkshire Combined Authority to improve our highstreets and support local businesses.   This Council believes that:   ·        Local residents should be encouraged to shop locally through awareness campaigns that highlight the benefits of supporting local businesses. ·        Calderdale has amazing and distinctive local businesses, and local residents should help to support them during this challenging period. ·        Local businesses and organisations should be encouraged to think about local and social value of their spend. ·        If every adult in Calderdale spent just £5 a week in our local businesses instead of online, it would be worth over £40 million per year for our local economy. ·        Calderdale Council should continue to look for opportunities to prioritise local spend and social value where feasible and within legal constraints.   This Council resolves to:   ·        Encourage local businesses and organisations to develop local spend campaigns such as “Totally Local” and “Magic Tenner”. ·        Support Calderdale Council procurement policies which encourage local supply chains, SMEs and social enterprises.   (C)   Solidarity with Ukraine   The Mayor advised that a Motion had been received from the Labour Group regarding Solidarity with Ukraine.  The Mayor further advised that an amendment had been received from the Liberal Democrat Group which had been circulated to the full membership of the Council prior to the meeting. On receipt of the amendment the Labour Group, after due consideration, amended their original Motion to incorporate Liberal Democrat amendment.   The Mayor asked Councillor Timbers if both himself and Councillor Hutchinson were happy to propose and second the incorporation of the Liberal Democrat amendment into the Labour Motion.  After being put to the vote the incorporation of the amendments into the original motion was carried.   It was moved by Councillor Timbers, Seconded by Councillor Hutchinson, and   RESOLVED that:   This Council notes:   ·         Calderdale Council is one of the sponsors of Calderdale Valley of Sanctuary, with a mission to create a culture of welcome for refugees and people seeking asylum, making Calderdale a safe and inclusive place for all. ·         According to 2021 ONS census, 50 Calderdale residents were born in Ukraine (LGA Residents born in Ukraine, Russia and other Eastern European countries). ·         Calderdale continues to be a place of sanctuary for Ukrainians living in the UK, after fleeing the war in their country. Around 200 Ukrainian refugees now call the borough home (Calderdale Council (2024) Supporting Ukrainian communities in Calderdale). ·         Calderdale has a long history of Ukrainian settlement and culture – with the former Ukrainian club located in Todmorden and The Ukrainians folk punk band formed in Hebden Bridge in 1991, reflecting on the experience of the Ukrainian diaspora in Calderdale and other parts of the UK.   This Council therefore believes that:   ·        Calderdale’s ties with Ukraine and its people are wide and deep within the Borough. ·        Calderdale residents with ties to Ukraine are going through a time of stress and anxiety and deserve the support and solidarity of the council.   This Council acknowledges:   The UN General Assembly, in its resolution of 2 March 2022, immediately qualified the Russian war against Ukraine as an act of aggression in violation of Article 2(4) of the UN Charter, and, in its resolution of 14 November 2022, recognised the need to hold the Russian Federation accountable for its war of aggression.   This Council asserts:   ·        That the war against Ukraine was started by the Russian Federation and its leadership in particular Vladimir Putin in contravention of international law. ·        That Ukraine is fighting for its liberty as a sovereign nation. ·        That Ukrainian culture and history is distinct from Russia’s (in its language, literature, music and, for example, as part of the former Polish Lithuanian commonwealth). ·        That Russia wishes to subjugate the Ukrainian nation and suppress its culture and identity, as shown by its treatment of children captured during its invasion of Ukraine   This Council welcomes:   ·        The UK’s staunch support for Ukraine under successive Prime Ministers.  ·        The current Prime Minister’s unwavering support for Ukraine during the Trump presidency and his international diplomacy in gathering support behind Ukraine and building bridges with the USA.   This Council resolves:   ·        To remain a place of sanctuary for all those fleeing invasion, war and oppression. ·        To celebrate Ukrainian culture through Culturedale and our library and museum services. ·        To use its communications where relevant and appropriate to express its support for Ukraine and solidarity with Calderdale residents affected by the invasion of Ukraine. ·        Calderdale Council promises to be fair in its approach to people fleeing persecution. ·        Calderdale Council extends its open arms and will give support and sanctuary to anyone who is legitimately fleeing persecution, no matter which country they are from.  

Date of Decision: April 9, 2025