Agenda item

Further to his declaration of a Disclosable Pecuniary Interest, Councillor Ronald Hills left the meeting room during the consideration of this item.

Councillor Neil Murray, Portfolio Holder for Economic Growth, provided Council with an update on the work of his portfolio.

Councillor Murray reported that economic growth remained at the heart of the Council’s 2020 vision for Lincoln, stating that the Council recognised the importance of the Council playing a full role in the economic life of the city itself and its wider area. Lincoln was a thriving city with a great future and its economy was diverse, not over reliant on one economic sector. However, Councillor Murray made the point that not everyone in the city was sharing the benefits of growth and that there was much more to do to eradicate poverty in Lincoln.

It was noted that the portfolio was broad, with updates on the following key projects or service areas included as part of the report:

·         Western Growth Corridor;

·         Parking and Transport;

·         Heritage;

·         Planning Policy;

·         Higher Education;

·         Tourism;

·         Supporting Lincoln Businesses;

·         Park Ward Regeneration.

Councillor Eddie Strengiel was unsure in what form or format the proposed Western Growth Corridor consultation would take and therefore sought further clarity. Referring to the 118 market properties referred to in the report in relation to the Western Growth Corridor, Councillor Strengiel made the point that this was the start of 3,200 properties that were intended to be built as part of the scheme. He was not concerned with the 118 properties referenced in the report as, in his opinion, this would not place much of a strain on the existing infrastructure. However, the inclusion of additional properties over and above that figure would cause significant problems if the necessary infrastructure was not in place. Councillor Strengiel understood that the slip road originally planned for Skellingthorpe Road was not now being included in the proposed scheme and was concerned about consequential additional traffic on that road.

Councillor Murray confirmed that an email would be sent to all members of the Council to provide clarity around the consultation process. The reason that development was proposed in this area was due to the substantial money the government was putting towards infrastructure to support the provision of decent homes for people to live. He confirmed that a quarter of these homes would be social housing.

Councillor Bob Bushell said that it was good to see the city thriving, but made the point that not everyone was sharing the benefits of this in view of the fact that Lincoln was still a low wage area. All 324 local authorities had been assessed on this basis and Lincoln was the 259^th lowest average wage earner compared to all other authorities in the country. He was therefore very pleased to see that the City Council had introduced the Social Responsibility Charter. In respect of working families, statistics showed that in the years 2014 to 2017 the number of people in poverty from working families had increased by over one million and that over 3 million children in the United Kingdom were now in poverty. Councillor Bushell also confirmed via information received from Citizens’ Advice that the number of people from Lincoln in absolute poverty was increasing and that this was disproportionate in respect of children, women and people with physical health problems. A review led by the United Nations had also confirmed that, in the United Kingdom, 14 million people were in poverty, with 1.5 million desolate. Councillor Bushell called this a disgrace, a social calamity and an economic disaster.

Councillor Murray agreed with Councillor Bushell’s comments. There was lots going on in Lincoln with some fantastic development driven by the University of Lincoln and he agreed that this was not benefitting everyone in the city, but added that there was work taking place seeking to address this.

Councillor Rosie Kirk reported that she was a member of the Local Government Association and understood that the Government had been holding confidential meetings regarding the Brexit proposals without including representatives of local government. She asked what preparations had been made locally regarding the impact of Brexit, particularly in view of local government not having been represented or involved in key meetings.

Councillor Murray agreed that it was alarming for local government not to be included in these discussions. However, he was not surprised given that local authorities had lost 50% of their revenue as a result of the government’s austerity measures.

Councillor Lucinda Preston agreed with the sentiments expressed by Councillor Bushell, particularly the United Nations review, stating that it was unjust and contrary to the values of the United Kingdom.

Councillor Murray thanked Councillor Preston for highlighting this point and was personally ashamed of the results of the United Nations review particularly given that the United Kingdom was one of the richest nations in the world. He added that austerity was a choice which had put a lot of people in the country into poverty.

Councillor Hilton Spratt agreed with the first two paragraphs of the Portfolio Holder’s report but disagreed with his reference to a hopeless national government, stating that members should be looking at the successes of the country over the last few years. He cited the following as examples:

·         reducing the national deficit;

·         creating 2.5 million new jobs;

·         implementing the lowest level of inflation in a generation;

·         maintaining the lowest level of interest rates for the longest sustained period;

·         maintaining mortgage rates at the lowest they had ever been, resulting in more people able to get onto the property ladder;

·         maintaining a higher minimum wage.

Councillor Spratt queried a national policy based on borrowing £100 billion a year which he felt would lead to increased interest rates ultimately resulting in home owners and business owners suffering, adding that such a policy would ultimately bankrupt the country.

Councillor Murray made no apology for the political nature of his report and responded by saying that there were no successes to speak of in relation to the current government, which he said was a government in crisis. He cited the prison service, local government and railways as examples where privatisation had failed to make services cheaper and better.

Councillor Gary Hewson acknowledged that Lincoln’s average wage showed a decrease over the last couple of years, which he felt was due to more people working in low paid jobs in the minimum wage scale. He therefore asked what the Council could do to encourage employers to pay the living wage as a minimum. Councillor Hewson also asked the Portfolio Holder what benefits he expected to see for the area as a result of the Park Ward scheme.

Councillor Murray confirmed that average wages in Lincoln had decreased, with the average being £21,285 in 2010 and £18,292 this year. Lots of people worked in public services, had temporary contracts and were on minimum wage and were struggling as a consequence. In respect of Park Ward, this was arguably the most deprived area in the city and a range of projects would be put in place in the ward to drive this important project forward.

Councillor Biff Bean, in respect of borrowing, claimed that over the last eight years the national debt had risen from £850 billion to almost £2 trillion. Councillor Bean also made the point that the Council relied on income from car parks as an important source of revenue. Understanding that this was a potential policy of the opposition, he queried how a policy of offering free car parking would impact this revenue income stream.

Councillor Murray reflected on the opposition’s proposal to offer free car parking, which he hoped would be submitted as an alternative budget.

Councillor Tom Dyer, in relation to the national government, said that day to say spending was down and that the government was running a budget surplus, claiming that the country’s current economic climate was as a result of the previous government. Responding to Councillor Bean, Councillor Dyer confirmed that his group’s policy would be to introduce one hour of free car parking to encourage people to come into the city centre, which would cost approximately £130,000 a year. He reported that the removal of the Council’s middle management would cover the cost of this deficit. Councillor Dyer highlighted that Lincoln had two growing universities and that the city was on the up. In respect of the Christmas Market, he hoped that the Council supported the event as much as possible and was concerned that the top floor of the Central Car Park was still not open. He therefore asked the Portfolio Holder when the top floor of the car park would be completed and operational. Councillor Dyer also welcomed investment into housing infrastructure but in respect of transport infrastructure associated with the Western Growth Corridor asked for reassurances regarding any detrimental impact to the area in that respect. He highlighted the recent announcement that the cap associated with borrowing against the Housing Revenue Account had been removed, saying that this was a positive step forward, and asked the Portfolio Holder what steps were being taken by the Council to utilise the lifting of this cap. In respect of the Social Responsibility Charter, it was reported to the Performance Scrutiny Committee that 30 local business had originally signed up to the Charter whereas this was now down to 16 businesses resulting in hundreds of people in the city now earning below the living wage. He therefore claimed that this was a failing policy.

Councillor Murray reflected on Councillor Dyer’s proposal to remove the Council’s middle management, stating that these managers were really important in delivering services and support to the front line. He agreed with the sentiment that Lincoln was on the up but that this did not currently benefit everyone and that those who were struggling needed to be supported. In respect of the Central Car Park, the Council’s contractor’s sub-contractor had unexpectedly gone into administration which was why there had been delays in finishing and opening the top floor of the car park. The Contractor was in the process of appointing another sub-contractor to complete the works, however, this would rely upon dry weather conditions. Regarding the Western Growth Corridor and concerns with infrastructure, this would be properly consulted upon as part of the statutory consultation requirements associated with the planning process, so reassurance was given that this element of the proposed development would be carried out properly. The Western Growth Corridor scheme sought to provide much needed good quality housing for people to buy or rent in Lincoln. Councillor Murray confirmed that he was currently in discussions with the Strategic Director of Housing and Investment regarding the lifting of the cap associated with borrowing against the Housing Revenue Account, the options available and how these could be taken forward. He added that it was a shame this cap had not been removed sooner. In respect of the Social Responsibility Charter, Councillor Murray was of the opinion that all members could do more to encourage employers paying the living wage, but added that the national government needed to improve things for everyone.