This Council:
- Welcomes the
UK-wide cross party campaign to end
‘legal loan sharking’.
- Believes that the lack of access to affordable
credit is socially and economically damaging. Unaffordable credit
is causing a myriad of unwanted effects such as poorer diets,
colder homes, rent, council tax and utility arrears, depression
(which impacts on job seeking behaviour) and poor
health.
- Further notes that unaffordable credit is
extracting wealth from the most deprived
communities.
- Believes it is the responsibility of all
levels of government to try to ensure affordable credit for all,
and therefore pledges to use best practice to promote financial
literacy and affordable lending. This will help to ensure that
wealth stays in the local economy.
This
Council therefore:
- Calls on the government to introduce caps on
the total lending rates that can be charged for providing
credit.
- Calls on the government to give local
authorities the power to veto licences for high street credit
agencies where they could have negative economic or social impacts
on communities.
- Pledges to promote credit unions
in Medway,
as community based organisations offering access to affordable
credit and promoting saving.
Councillor Mason, Portfolio Holder for
Corporate Services, supported by Councillor Doe, Portfolio Holder
for Housing and Community Services, proposed the following
amendment:
Replace original
motion with the following:
This Council:
- Welcomes the
UK-wide cross party campaign to end ‘legal
loan sharking’.
- Believes that the lack of access to affordable
credit is socially and economically damaging. Unaffordable credit
is causing a myriad of unwanted effects such as poorer diets,
colder homes, rent, council tax and utility arrears, depression
(which impacts on job seeking behaviour) and poor
health.
- Further notes that unaffordable credit is
extracting wealth from most communities.
- Believes it is the responsibility of central
government through legislation to ensure access to affordable
credit.
- Agrees that the issue of debt and affordable
credit is an important and complex issue and is causing stress and
anxiety to many families in Medway.
This Council
therefore:
- Resolves for this issue to be referred to a
cross-party task group of Overview and Scrutiny as a priority.
This will enable the Council to consider all the implications, form
a better understanding of the role the Council can play in
supporting our residents and develop a clear
policy.
- In particular it recommends that the task
group considers how the Council can lobby the government to
strengthen the rules governing the issue of lending licences and
address the lack of affordable credit and how the Council can
promote financial literacy and affordable
lending.
Councillor Maple proposed a further amendment
to include the last bullet point from his original motion
(Pledges to
promote credit unions in Medway, as community based
organisations offering access to affordable credit and promoting
saving) to be included in the amendment.
With the consent of the Council, Councillor
Mason, Portfolio Holder for Adult Services, and the seconder,
confirmed that, he was happy to incorporate this in the
amendment.
On being put to the vote, the amendment was
carried:
This Council:
- Welcomes the
UK-wide cross party campaign to end ‘legal
loan sharking’.
- Believes that the lack of access to affordable
credit is socially and economically damaging. Unaffordable credit
is causing a myriad of unwanted effects such as poorer diets,
colder homes, rent, council tax and utility arrears, depression
(which impacts on job seeking behaviour) and poor
health.
- Further notes that unaffordable credit is
extracting wealth from most communities.
- Believes it is the responsibility of central
government through legislation to ensure access to affordable
credit.
- Agrees that the issue of debt and affordable
credit is an important and complex issue and is causing stress and
anxiety to many families in Medway.
This Council
therefore:
- Resolves for this issue to be referred to a
cross-party task group of Overview and Scrutiny as a priority.
This will enable the Council to consider all the implications, form
a better understanding of the role the Council can play in
supporting our residents and develop a clear
policy.
- In particular it recommends that the task
group considers how the Council can lobby the government to
strengthen the rules governing the issue of lending licences and
address the lack of affordable credit and how the Council can
promote financial literacy and affordable
lending.
- Pledges to promote credit unions
in Medway, as community based organisations offering access to
affordable credit and promoting saving.
The substantive motion was put to the vote and
was carried.
Decision:
This Council:
- Welcomes the
UK-wide cross party campaign to end ‘legal
loan sharking’.
- Believes that the lack of access to affordable
credit is socially and economically damaging. Unaffordable credit
is causing a myriad of unwanted effects such as poorer diets,
colder homes, rent, council tax and utility arrears, depression
(which impacts on job seeking behaviour) and poor
health.
- Further notes that unaffordable credit is
extracting wealth from most communities.
- Believes it is the responsibility of central
government through legislation to ensure access to affordable
credit.
- Agrees that the issue of debt and affordable
credit is an important and complex issue and is causing stress and
anxiety to many families in Medway.
This Council
therefore:
- Resolves for this issue to be referred to a
cross-party task group of Overview and Scrutiny as a priority.
This will enable the Council to consider all the implications, form
a better understanding of the role the Council can play in
supporting our residents and develop a clear
policy.
- In particular it recommends that the task
group considers how the Council can lobby the government to
strengthen the rules governing the issue of lending licences and
address the lack of affordable credit and how the Council can
promote financial literacy and affordable
lending.
- Pledges to promote credit unions
in Medway, as community based organisations offering access to
affordable credit and promoting saving.