"Austerity does not work", says Gateshead Council leader as winter fuel allowance scrapped for millions

Gateshead Council's Labour group "condemns" austerity in a council motion following the removal of the winter fuel allowance for millions

Gateshead Council's ruling Labour Party "condemns" "further austerity" following the government's decision to scrap the winter fuel allowance for up to 10 million pensioners nationwide.

Gateshead's Labour Group passed a motion to write to both the Prime Minister and Chancellor that the government's plans to "rebuild" the UK cannot be achieved through, as the motion puts it, "further austerity". However, both the motion and Gateshead Labour leader Coun Martin Gannon also stated the new government had inherited "an extremely difficult legacy" from the previous Tory administration, including a reported £20bn black hole in public finances.

Local councillors are also pushing for a progressive taxation system to better fund public services and welfare. Earlier this month, MPs voted 348 to 228 to axe the payment, worth up to £300, for pensioners not in receipt of some form of income support, most notably pension credit.

The local authority among councils across the UK had previously launched campaigns to get as many eligible but unregistered OAPs to sign up for pension credit to save their winter fuel allowance.

Coun Martin Gannon said: "We recognise that this will have a significant negative, detrimental impact, on huge swathes of households in Gateshead."

Coun Gannon continued: "It [the motion] outright condemns austerity. We recognise the challenging agenda this government has and the toxic legacy that it has inherited. £20bn that we all knew about before the election and wasn't being talked about with commitments that weren't properly funded.

"Clearly there is an emergency that needs to be dealt with. We support the government's agenda in terms of rebuilding Britain and tackling that toxic legacy. "

However, the leader went on to say: "Austerity does not work, it reduces the level of income to people, reduces growth in the economy, and tax revenues as a consequence to the government go down."

Gannon added: "I will write to the PM and the chancellor, and we will express that, our pledge of support to this government in turning this mess of an economy around, but it cannot be on the basis of austerity. The evidence shows that has failed."

The motion that was passed by the council's Labour majority had originally been tabled by opposition Liberal Democrats. However, the motion, following a vote, was re-written by Coun Gannon.

The Lib Dem opposition leader, coun Ron Beadle said: "The motion that we put, the substance of the motion, we actually agree. We didn't even use the word labour in the motion, we referred to the government, and we didn't want to put that as an alienating factor between us.

"We put that as a motion because on the substance we agree, but instead of agreeing, which would have had both of us writing a letter representing the agreement of this council, you put an amendment you know we cannot support. I just think it's a huge pity because it's an opportunity for us to come together which has been lost."

Join our Breaking News and Top Stories WhatsApp community

Join our Breaking News and Top Stories WhatsApp community for all the latest news direct to your phone.

To join you need to have WhatsApp on your device. All you need to do is choose which community you want to join, click on the link and press 'join community'.

No one will be able to see who is signed up and no one can send messages except the ChronicleLive team.

We also treat our community members to special offers, promotions, and adverts from us and our partners.

If you don't like our community, you can check out any time you like. To leave our community click on the name at the top of your screen and choose 'exit group'.

If you’re curious, you can read our privacy notice.

CLICK HERE TO JOIN