Agenda

Including any notices of motion and any other items of business submitted as urgent for consideration at the meeting.

Members should declare any financial and non-financial interests they have in the items of business for consideration, identifying the relevant agenda item and the nature of their interest.

If any

Minute of Policy and Sustainability Committee of 22 October 2024 – submitted for approval as a correct record

Work Programme

Rolling Actions Log

Business Bulletin

Internal Audit: Audit outcomes June to October 2024 - referral from the Governance, Risk and Best Value Committee

Internal Audit Open and Overdue Internal Audit Actions – Performance Dashboard as at 13 September 2024 – referral from the Governance, Risk and Best Value Committee

By Councillor Kumar - Impact of Budget on Edinburgh Health and Social Care Services and Renters

“Notes

1)         That the UK Chancellor has recently increased National Insurance (NI) contributions for employers to 15% and reduced earning thresholds from £9100 to £5000 annually.

2)         The increase in employers’ National Insurance contributions is estimated to cost Scotland’s public sector approximately £500 million, reflecting its proportionally larger workforce compared to the UK average. Of this total, £265 million is expected to fall on local government, while commissioned health and social care services face an additional burden of £85 million.

3)         That the UK Chancellor has also chosen to freeze the Local Housing Allowance – which is used to calculate the maximum amount of housing benefit payment or universal credit that can be claimed for. 

Recognises

4)         That the increase in NI is likely to have a significant negative impact on pharmacies, care homes, hospices, and third sector organisations who help deliver essential health and social care services to vulnerable people.

5)         That the additional financial constraint will mean limiting wage increases, cutting jobs, or reduce/freezing hiring – hindering growth. For some charities, this may mean permanent closure. Further noting discussions at EIJB at the future of funding for third sector organisations.

6)         That freeze in housing benefits means many low-income renters will not be able to keep up with rising rents due to increasing financial hardship and hinder those already struggling to afford housing in Edinburgh. That this has potential impact on rising homelessness and poverty with impact on health and wellbeing.

Agrees

7)         To address this financial strain, it is proposed that the Council Leader writes to the Chancellor of the Exchequer, urging the UK Government to fully fund these additional costs. This would help protect essential services and mitigate the risk of further cuts in already stretched sectors such as health, social care, and local government operations.

8)         That Council Leader expresses Council's views and highlighting the disastrous impact on Edinburgh and its residents while highlighting the recommendations of the Poverty Commission and urge Chancellor to:

a)         fully fund the increase in NI contributions for health and social care partners

b)         to implement measures to mitigate the impact of the increase using strategies such as tax relief or grants.

c)         increase housing benefits of LHA rates to ensure low-income households can afford adequate housing b) offer targeted support such as increased in benefits or tax credits

d)         implement a mechanism to regularly review and update LHA rates to reflect changes in the housing market in Edinburgh.

9)         That this letter should be shared with all elected members for information.”