Notice of Motion:
Ceredigion County Council is calling on the British Prime Minister, Sir Keir Starmer and Chancellor Rachel Reeves to re-consider and reverse the financial decisions they have made regarding the issues set out below:
1. Energy allowance withdrawn for many of the elderly living in Ceredigion which will have a significant impact on their health and wellbeing, and who will struggle to heat their homes today and, in the future, following this decision.
2. Proposed changes to Inheritance Tax that the Chancellor is introducing are going to be detrimental to many Ceredigion farmers and businesses. No changes should be made to the current systems, in terms of the Agricultural Property Relief (APR) and Business Property Relief (BPR)
3. The proposed double change to the National Insurance Tax of increasing the percentage payable, but also the lowering of the starting threshold at the same time should be reversed. This decision will have an adverse consequence on employment and a significant impact on the cost of running a business.
Proposer: Councillor Wyn Evans
Seconder: Councillor Rhodri Evans
Minutes:
Councillor Matthew Vaux, and Lowri Edwards, Corporate Lead Officer: Democratic Services withdrew from the meeting for the duration of the discussion.
Proposer: Councillor Wyn Evans
Seconder: Councillor Rhodri Evans
Ceredigion County Council is calling on the British Prime
Minister, Sir Keir Starmer and Chancellor Rachel Reeves to re-consider and
reverse the financial decisions they have made regarding the issues set out
below:
1.
Energy allowance withdrawn for many of
the elderly living in Ceredigion which will have a significant impact on their
health and wellbeing, and who will struggle to heat their homes today and, in
the future, following this decision.
2.
Proposed changes to Inheritance Tax that
the Chancellor is introducing are going to be detrimental to many Ceredigion
farmers and businesses. No changes should be made to the current systems, in
terms of the Agricultural Property Relief (APR) and Business Property Relief
(BPR)
3.
The proposed double change to the
National Insurance Tax of increasing the percentage payable, but also the
lowering of the starting threshold at the same time should be reversed. This
decision will have an adverse consequence on employment and a significant
impact on the cost of running a business.
Councillor Wyn Evans gave an outline of the above Notice of Motion, noting that the decision of the UK Government regarding the Winter Fuel Allowance was placing financial pressures upon those that are less fortunate, which in turn was impacting upon services provided by local authorities. He also noted that a substantial number of the residents of Ceredigion fall into this category.
He noted that the agricultural inheritance tax threshold was far too low and that it would have a significant impact on the next generation, noting that a farm of 100 acres with no buildings in the north of the county had been sold recently for £1.4m, and that another farm of 192 acres which is being advertised for sale had a guide price of £2.4m.
He also noted that the changes to the Employers’ National Insurance contributions would impact a number of businesses which employ people in Ceredigion, which would result in an increase to the cost of services and consumables, which would have to be passed on to the consumers. In addition, several businesses have decided to reduce the workforce, which will have a further impact upon the community and the young people who wish to remain in the area.
Councillor Rhodri Evans seconded the motion, thanking the Farmers’ Unions for their letters of support. He also referred to the impact that the changes to the Winter Fuel Allowance would have upon the most vulnerable members of society and concerns regarding rural poverty in Ceredigion. He also noted that he had been contacted by numerous residents concerned that small businesses and farms would not be able to afford the inheritance tax and would have to sell which would breakdown the character and the local economy of Ceredigion. He proposed that the content of the letters from the Farmers’ Unions were included within the correspondence to the UK Government.
Councillor Bryan Davies, Leader of the Council noted that the price for livestock was relatively high at present due to the reduction in production and the sale of farms however it had been reported that the UK had seen the highest increased in imported meats since 2008, noting that there was a risk of opening the floodgates for food of a lower quality. He emphasised the importance of encouraging young people to enter the agricultural industry, noting his concern that this would have no purpose if they were punished for doing so. He noted that it had been estimated that the changes to the inheritance tax would impact circa 150 to 200 farms in Ceredigion. He also noted that the changes to employers’ National Insurance contributions had a direct impact on the Council Tax, resulting in a 2.9% increase.
Councillor Elizabeth Evans noted that the impact on businesses would prevent investment, job creation and growth in areas that are dependent upon tourism and the care sector which is already on the brink. She noted that in addition to the inheritance tax, there are several other cuts hidden in small print within the budget, which would result in reduced support for farmers after years of chaos and uncertainty following Brexit. There was a risk of a lost generation of farmers and food production which was all leading to a perfect storm.
Several members reiterated the above sentiments, noting a need for an energy tariff to protect the elderly and the high level of cold weather deaths in Ceredigion. They also highlighted their concerns that businesses were purchasing land which was not being farmed in order to avoid paying taxes, and the importance of high-quality local food production and a reduced carbon footprint which was also important in terms of attracting tourism to the area. It was noted that these changes would lead to an end of family farms and also impact upon other businesses and industry reliant upon farming such as factories, contractors, machinery suppliers etc.
Members thanked their electors for the letters of support that they had received.
Following a vote, it was unanimously RESOLVED to agree the motion.