Issue - meetings

To consider the report of the Cost of Living Forum.

Scrutiny Committee – Economy considered the report at its meeting on 6 March 2014 and its comments will be reported.

Councillor Denham presented the report to establish whether Council funding would be available to conduct and requisition specific research to further work being undertaken by the Cost of Living Forum and whether the extent of any available Council funding would be sufficient to cover the full cost of the proposed research. The Forum had requested the University of Exeter to present a Research Proposal with costs for consideration. The University’s costs proposed had been set out in the sum of £12,400 and she reported that the University had now adjusted that figure to £9,950, exclusive of VAT, following further negotiation.

Responding to Members Councillor Denham explained that Exeter possessed a high proportion of jobs in the lower paid sector and that greater encouragement of jobs in the knowledge based economy would help attract higher paid opportunities. It was also hoped that employers could be encouraged to understand the overall benefit of increasing low wages to both the economy as well as their own companies. She advised that data at a local authority level was not sufficiently robust and that research was therefore necessary to gather evidence to establish an accurate and reliable baseline for wages and cost of living in Exeter. The University involvement was from a social policy perspective and would not simply act as a data collection body.

The report had been considered at the Scrutiny Committee - Economy on 6 March 2014 and the support and comments were noted.

Members broadly welcomed this initiative, one Member stating that it would be helpful for the Forum to dovetail its deliberations with the Council’s “One View of Debt” policy and another Member referred to the importance of individuals prioritising their spending.

RESOLVED that Executive approve funding of up to £9,950 exclusive of VAT, as set out in the report, and with consideration to the University’s revised costing.

To consider the report of the Cost of Living Wage Forum Group.

Councillor Branston declared an interest as he was employed by a company which carried out market research.

Councillor Denham, in her capacity as Chair of the Cost of Living Forum presented an interim report on their findings and also sought Members’ views and support for funding to conduct and requisition specific research to further this work.  Concerns in relation to the cost of living had originally been raised at Scrutiny Committee – Economy, and resulted in the Cost of Living Forum being established, together with two further sub-groups on wages and the affordability of housing. Despite the availability of data and partnership influence, the Forum considered there was a need for more meaningful local data pertaining to Exeter. Researchers from the Marchmount Observatory at Exeter University had offered the opportunity to conduct some individual research including document review, data analysis and consultation.  Hilary Stevens, from Exeter University attended the meeting to present more detail of the draft proposal. Members’ views were sought on whether the research should be pursued, and how best it could be used for maximum impact.

Hilary Stevens referred to the scoping document and the varying stages of research which included gathering evidence to establish a baseline for wages and cost of living in Exeter.  This would include exploring in partnership with a broad range of stakeholders, a number of strategies and solutions to problems that had been identified following the evidence gathering exercise.   The research would also be informed by consideration of the following including -

·      providing a clear understanding of what the terms ‘cost of living’, ‘low income’ and ‘affordability’ meant and how these concepts would be measured at the local level.

·      looking at the affordability of housing in Exeter and compare to a benchmarked level of analysis.

·      consideration of the consequences of low housing affordability for individuals and households, on businesses and the community as a whole using existing research and personal contact for the local view.

·      exploring the options for local action by engaging with local stakeholders and local authorities in other areas to consider the main challenges, and 

·      consideration of the demand for student housing and the effect on private sector renting as well as the costs and benefits of adopting the living wage on household incomes and the wider economy. 

Members made the following comments –

• that this funding request for the study should be supported as low pay was an issue in Exeter.  Some employers might consider they did not have ability to pay a higher level of wages, but the concerns raised have been gathering momentum and should be addressed.
• that the work of the members of the Forum including Councillor Denham and the Scrutiny Programme Officer should be recognised.  The Forum are a significant group who were working hard to raise the profile of a very pertinent  issue in the city, and a joint approach relating to issues surrounding housing and wages would be very helpful.
• whether a shared view of a number of issues such  ...  view the full minutes text for item 19