Cllr Kaya Comer-Schwartz: ‘The stark reality is that we are only at the beginning of the cost of living crisis’

IN the face of a “tough winter looming,” a cost of living emergency has been declared by the Town Hall.

The council announced further support for businesses and residents at full council on Thursday night, including grants to cover energy costs, funded by the government’s UK Shared Prosperity Fund.

Small businesses and freelancers working for the council will also be paid for their work within two weeks rather than a month, and the council has pledged to work with local businesses to investigate the bulk buying of energy.

The council’s latest figures show 11,673 households in Islington are in fuel poverty, meaning the cost of energy bills will bring their income below the poverty line, while 9,901 households now live in relative poverty.

In her maiden speech to the council chamber, St Mary’s and St James’ councillor Saiqa Pandor said there was a “tough winter looming,” and moved the motion to declare a cost of living emergency.

“It isn’t necessary in the fifth wealthiest nation in the world that more than half of all UK households are at risk of fuel poverty,” she said.

She described the cost of living crisis as the “consequences of years of political choices by the Tory government and their Lib Dem allies”.

She said: “Of course the war in Ukraine has had an impact but our government has left this country unequally ill-prepared for an extreme shock, stripping away our national social safety net.”

Leader of Islington Council, Cllr Kaya Comer-Schwartz, called on the government to increase universal credit payments in line with inflation, invest in retrofitting homes, along with rent controls.

“Tonight we sadly have to declare a cost of living emergency in Islington, and call on this government to take action,” she said. Islington’s Green Party backed the motion.

“The stark reality is that we are only at the beginning of the cost of living crisis, and thousands of people may have to make difficult choices in the coming months as their household budgets are swallowed up by spiralling energy and food bills.” She described the government’s business support package as a “sticking plaster in the short-term”.

The day after the council meeting, new Chancellor Kwasi Kwarteng released his “mini-budget” delivering the biggest tax cuts on wealth in a generation, scrapping bankers’ bonus caps and cutting stamp duty on house buying.

Since the announcement the value of the pound has dropped sharply against the dollar, and the Bank of England has been forced to buy government bonds to avoid a run on pension funds. The International Monetary Fund issued an un­usual rebuke to the government, warning the measures will “likely increase inequality”.

But in a series of interviews with regional broadcasters yesterday (Thursday), PM Liz Truss stood by the measures, saying she has to do “what I believe is right”.

National day of demonstrations

A NATIONAL day of action has been called by protesters who say the cost of living crisis has gone too far, writes Tom Foot.

The Enough is Enough campaign has called the demonstrations across the country including at King’s Cross on Saturday from midday. The group, based in Shelton Street, Covent Garden, is trying to mount a fightback.

Backing the protest planned for outside the station, the RMT’s Mick Lynch said the govern­ment’s new budget combined with the energy bill rises “looks completely callous”, adding: “It looks like a transfer of wealth from ordinary people to the uber-rich, and that will be resented for many years to come.”

Mick Lynch

He added: “People are fed up. We need to turn that into real organisation.”

There will be protests in 50 cities and towns across the country on Saturday. The Enough is Enough campaign wants changes so that everyone has enough to eat, affordable bills and a decent place to live. It says millions of people will be dragged under the poverty line unless the October price cap is cancelled.

Longer-term it says energy companies should be brought into public ownership with public investment in renewable energy to “break the power of the oil giants”.

A right to food should be enshrined in law and rents should be capped and the National Insurance hike reversed, it adds.