Exeter declares cost of living emergency
By Ollie Heptinstall, local democracy reporter.
A cost of living emergency has been declared by Exeter councillors, after they heard about some of the struggles being faced by residents.
The motion, put forward by Labour member Martin Pearce at a meeting on Tuesday (18 October), included asking the government to call an emergency budget to “protect children, families and pensioners from the worst fall in living standards in generations.”
It also urged prime minister Liz Truss to cut business rates for small companies, reduce VAT rate on energy bills, increase support available to claimants through the welfare and benefits system, and to expand the free school meals’ programme to all families receiving benefits.
Inflation now stands at 10.1 per cent, mortgage costs are rising and there is concern about what will happen in April when the government’s price freeze on energy bills for all households will end.
A number of members spoke in favour of the motion and criticised the government, with Councillor Josie Parkhouse (Labour, Pennsylvania) highlighting the difficulties currently being faced by some of the city’s population.
She shared a number of personal testimonies by users of the Exeter food bank, which has seen a large increase in the number of people asking for support. One person was quoted as saying: “I worry I won’t be able to feed my children, afford my bills and rent too.”
Another reportedly said: “I can’t afford to buy my son any birthday presents if I want to heat my home or feed my family.”
Cllr Parkhouse quoted another testimony in full, which said: “I’m unable to eat three meals a day. I’m unable to pay for my fuel bill. I’m in debt. I’m unable to go to the dentist. I’m unable to afford even the smallest of luxuries and I’m no longer able to afford pet insurance.”
Fellow Labour councillor Rob Hannaford (St Thomas) claimed austerity had led to a “tired” and “worn out” country with “ravaged public services, people struggling [and] financial turmoil.
“And what is the answer apparently? More of the same,” said Cllr Hannaford, who believes austerity and trickle-down economics – in which tax breaks are given to wealthier people and businesses so they create jobs – don’t work.
But Tory group leader Anne Jobson set out why she could not support the motion. A number of councillors laughed after she claimed the spending cuts imposed in 2010 were caused by the “mismanagement of the economy by the last Labour government.”
It comes just days since her party was forced to abandon much of its mini-budget after the financial markets reacted badly to the un-costed plans, borrowing costs soared and the Bank of England intervened to provide cash to stop pension funds going bust.
Althoug Ms Jobson hoped the new chancellor would raise benefits in line with inflation, she later said: “If we are to protect children, families and pensioners, as we all want to do, then inflation must be controlled.”
The member for St Loyes accepted borrowing was necessary for the furlough scheme but stressed: “That borrowing now has to be paid for” and highlighted how the “un-costed” measures included in the motion would have to be financed by further borrowing.
But Cllr Pearce claimed they were all funded measures and part of national Labour policy.
Lib Dem councillor Michael Mitchell (Duryard & St James) accused the government of inflicting “pain upon this country,” adding the motion was “a start, because people are suffering out there.”
