Liz Jarvis and EBC call on government to address Cost of Living Emergency

The Cabinet at Eastleigh Borough Council have declared a 'Cost of Living Emergency' and called on the government to do more to address price rises which are squeezing the household budgets of millions across the country. 

The motion, brought forward by Cllr Liz Jarvis calls on the government to:

• Immediately reduce the standard rate of VAT from 20% to 17.5 % for one year, saving the average household in Eastleigh a further £600 this year.
• Immediately re-introduce the pensions triple lock to support Eastleigh pensioners.
• Immediately restore the Universal Credit supplement of £20, which as cancelled by Government in September 2021.
• Immediately change taxation on fuel to transfer the risk of price changes to the Government, with fuel prices pegged at long-term average prices.

Councillor Keith House said: ‘This is a very real crisis that is of grave concern to many of our residents; the Government must take definitive action now to protect those who are most vulnerable, as a local authority we will do everything in our power to support our residents during this worrying time, but more must be done at central government level to alleviate this crisis.’

The motion has been sent to the Chancellor of the Exchequer and the Secretary of State for Work and Pensions. EBC awaits a response. 

Eastleigh is directly feeling the affects of a national economic downturn and the failure of the government to properly respond to the crisis. Eastleigh Basics Bank has provided food for 1,188 people in 2022 - 614 adults and 574 children, which is up by over a third compared to pre-pandemic levels. Likewise, the rise in National Insurance, Income Tax, and VAT this year is likely to cost the average family an additional £638 this year. 

The government has announced it will reinstate the triple lock for pensions next year, by suspending it for 2022/3, Eastleigh’s 19,437 pensioners will see a rise of 3.1% this year (instead of 8.3% under the triple lock formula) costing pensioners in Eastleigh hundreds of pounds.

Cllr Jarvis' motion calls on the government to impose a further Windfall Tax on the profits of oil and gas companies and to distribute a one-off payment of £400 to households later this year. Cabinet welcomes the Windfall Tax, but believes it does not go nearly far enough and the Government should be doing much more to support local people through the Cost of Living crisis.