To receive and consider the recommendations of the Cabinet (Minute 581d) as an amendment to the following Notice of Motion submitted previously to the Council by Councillor Hannaford and referred thereto in accordance with Standing Order 8(2), namely
Council Notes With Concern
The South West region has seen some of the highest employee furlough rates in the country during the first part of the Covid-19 pandemic. Figures show that under the Government's Job Retention Scheme, 808,900 people in the region were furloughed, with take-up in the South-West of 32.1%, being the second highest for any region in England after the West Midlands.
Retail has been the sector hardest hit by mass redundancies since the pandemic began, with manufacturing, tourism, hospitality and aviation also being badly affected.
Tens of thousands of job losses have been announced, and more mass redundancies are expected in these sectors, yet they will not receive any tailored support when the Government’s jobs-retention scheme is scheduled to finish at the end of October. Our country is facing an unprecedented jobs crisis. The Office for Budget Responsibility predicts that, by the end of this year, nearly one in eight of the UK’s workforce will be unemployed.
The Government’s current plan to end furlough outright is oversimplistic and will only exacerbate the problem - it puts millions of jobs at risk. Regions such as the South West, are as a direct result at risk of suffering from deepening inequality. Britain already has the worst regional inequalities in Europe, and without targeted action now, these are likely to get even worse.
Council Supports
The work of the Treasury select committee, that has called on the Government to “carefully consider” targeted extensions to its coronavirus job retention scheme, that is due to end for all sectors. The new ‘Challenges of Recovery’ report from the cross-party group of MPs, concludes that although the retention scheme “cannot persist indefinitely” the Chancellor should consider further support measures.
Commenting on the new publication, Treasury select committee chair Mel Stride MP said: “Our second report of the inquiry focuses on emerging challenges as lockdown measures are lifted. One such challenge is to target assistance effectively at those businesses and individuals who need it. The Chancellor should carefully consider targeted extensions to the coronavirus job retention scheme and explain his conclusions.”
The new report is the second by the committee on the economic impacts of Covid-19. The first identified gaps in the Government’s financial schemes that left at least one million people unsupported. The proposals set out in the earlier June report were ignored, which led the Treasury select committee to accuse the Government of “turning its back on those who are suffering”.
The newly released report also says the Government should extend reforms to Universal Credit past their one-year cut-off, support small businesses struggling with debt and define “levelling up”.
Although the Prime Minister claims to have made reducing regional inequalities a central aim of his administration, the committee accuses his ‘levelling up‘ promise of being merely an “empty slogan”.
The Chair Mel Stride MP added: “The key will be assisting those businesses who, with additional support, can come through the crisis as sustainable enterprises, rather than focusing on those that will unfortunately just not be viable in the changed post-crisis economy. As the committee has said throughout the crisis, the Chancellor must continue to show flexibility in his approach. We hope that the Treasury’s unwillingness to implement the recommendations from our first report is not a sign of how it will respond to this one.”
Council Believes That
We need a financial support system that specifically targets industries worst hit by the pandemic, seeks greater economic protections for any areas under local lockdown restrictions, and ensures incomes for people who are forced to self-isolate. Without targeted support viable businesses will fail and employment will be lost. This will extinguish any hopes of a quick economic recovery from the deep economic recession that we are facing.
Our region and the whole country is now facing a social and economic toxic shock through the threat of mass unemployment in tandem with an international health crisis from a second wave of the pandemic.
Council Resolves
To formally write to the Prime Minister, Chancellor of the Exchequer, and all our local Members of Parliament as a matter of urgency to call again on the Government, in the strongest possible terms, to not implement its damaging blanket approach to indiscriminately sever and totally withdraw the current furlough scheme. Which fails to consider the circumstances of different regions, such as the South West, and the most effected sectors, with the deep impact on the communities that have a proud history in these industries. Therefore to urge the Government to do right by our local communities and businesses and see them through the crisis by targeting support, extra relief for lockdown areas, extend the eviction ban, adequate support for self isolators, and not pull the life raft away while the storm is still raging, to save jobs, and to potentially save lives.
Having had regard to the aforementioned, any factual briefing/position statement on the matter set out in Report (CSO/20/16) and other suggestions or alternatives considered at that meeting the Cabinet subsequently resolved:
(a) that Council be recommended, in light of recent announcements and amendments to the package of support offered to areas facing restrictions, that no letter be sent at this time; and
(b) that Council continue to monitor the economic impacts facing the Devon economy and consider the ongoing economic consequences from additional restrictions and measures that could potentially be applied to Devon and its neighbours.
Minutes:
Pursuant to County Council Minute 316 of 1 October 2020 relating to the Notice of Motion set out below as previously submitted and formally moved and seconded by Councillor Hannaford that:
Council Notes With Concern
The South West region has seen some of the highest employee furlough rates in the country during the first part of the Covid-19 pandemic. Figures show that under the Government's Job Retention Scheme, 808,900 people in the region were furloughed, with take-up in the South-West of 32.1%, being the second highest for any region in England after the West Midlands.
Retail has been the sector hardest hit by mass redundancies since the pandemic began, with manufacturing, tourism, hospitality and aviation also being badly affected.
Tens of thousands of job losses have been announced, and more mass redundancies are expected in these sectors, yet they will not receive any tailored support when the Government’s jobs-retention scheme is scheduled to finish at the end of October. Our country is facing an unprecedented jobs crisis. The Office for Budget Responsibility predicts that, by the end of this year, nearly one in eight of the UK’s workforce will be unemployed.
The Government’s current plan to end furlough outright is oversimplistic and will only exacerbate the problem - it puts millions of jobs at risk. Regions such as the South West, are as a direct result at risk of suffering from deepening inequality. Britain already has the worst regional inequalities in Europe, and without targeted action now, these are likely to get even worse.
Council Supports
The work of the Treasury select committee, that has called on the Government to “carefully consider” targeted extensions to its coronavirus job retention scheme, that is due to end for all sectors. The new ‘Challenges of Recovery’ report from the cross-party group of MPs, concludes that although the retention scheme “cannot persist indefinitely” the Chancellor should consider further support measures.
Commenting on the new publication, Treasury select committee chair Mel Stride MP said: “Our second report of the inquiry focuses on emerging challenges as lockdown measures are lifted. One such challenge is to target assistance effectively at those businesses and individuals who need it. The Chancellor should carefully consider targeted extensions to the coronavirus job retention scheme and explain his conclusions.”
The new report is the second by the committee on the economic impacts of Covid-19. The first identified gaps in the Government’s financial schemes that left at least one million people unsupported. The proposals set out in the earlier June report were ignored, which led the Treasury select committee to accuse the Government of “turning its back on those who are suffering”.
The newly released report also says the Government should extend reforms to Universal Credit past their one-year cut-off, support small businesses struggling with debt and define “levelling up”.
Although the Prime Minister claims to have made reducing regional inequalities a central aim of his administration, the committee accuses his ‘levelling up‘ promise of being merely an “empty slogan”.
The Chair Mel Stride MP added: “The key will be assisting those businesses who, with additional support, can come through the crisis as sustainable enterprises, rather than focusing on those that will unfortunately just not be viable in the changed post-crisis economy. As the committee has said throughout the crisis, the Chancellor must continue to show flexibility in his approach. We hope that the Treasury’s unwillingness to implement the recommendations from our first report is not a sign of how it will respond to this one.”
Council Believes That
We need a financial support system that specifically targets industries worst hit by the pandemic, seeks greater economic protections for any areas under local lockdown restrictions, and ensures incomes for people who are forced to self-isolate. Without targeted support viable businesses will fail and employment will be lost. This will extinguish any hopes of a quick economic recovery from the deep economic recession that we are facing.
Our region and the whole country is now facing a social and economic toxic shock through the threat of mass unemployment in tandem with an international health crisis from a second wave of the pandemic.
Council Resolves
To formally write to the Prime Minister, Chancellor of the Exchequer, and all our local Members of Parliament as a matter of urgency to call again on the Government, in the strongest possible terms, to not implement its damaging blanket approach to indiscriminately sever and totally withdraw the current furlough scheme. Which fails to consider the circumstances of different regions, such as the South West, and the most effected sectors, with the deep impact on the communities that have a proud history in these industries. Therefore to urge the Government to do right by our local communities and businesses and see them through the crisis by targeting support, extra relief for lockdown areas, extend the eviction ban, adequate support for self isolators, and not pull the life raft away while the storm is still raging, to save jobs, and to potentially save lives.
and having had regard to the advice of the Cabinet set out in Minute 581d of 11 November 2020:
(a) that Council be recommended, in light of recent announcements and amendments to the package of support offered to areas facing restrictions, that no letter be sent at this time; and
(b) that Council continue to monitor the economic impacts facing the Devon economy and consider the ongoing economic consequences from additional restrictions and measures that could potentially be applied to Devon and its neighbours.
Councillor Hart MOVED and Councillor McInnes SECONDED that the Cabinet’s advice be accepted and that in light of the package of support offered to areas facing restrictions and that the Council would continue to monitor the economic impacts facing the Devon economy no further action be taken on the Notice of Motion at this time.
The amendment in the name of Councillor Hart was then put to the vote and declared CARRIED and subsequently thereafter also CARRIED as the substantive motion.