Agenda item

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 as rents could be considered through a benchmarking exercise with similar local authorities.
• there should not be a duplication of the evidence gathering work. 
• there was a need for Exeter focused data to inform and programme future study.
• a policy based on sound evidence using a consistent methodology and benchmarking would be important.

Councillor Denham responded to a Member’s comment and clarified that the research would be in accordance with the City Council’s policy for commissioning external work.  She felt that the Exeter specific nature of the work would help inform dealing with issues in the local economy and provide a lever for change.  The research was not just about data gathering, but should provide a set of Exeter centric statistics to show what was actually happening on the ground. 

Scrutiny Committee – Economy noted the report and agreed that the Research Proposal and Costing provided by Exeter University be submitted to the Executive with a request for approval for funding either in whole or part.