Agenda item

To consider a motion on notice submitted by Cllr Simon Gibson.

Full Council received the following Notice of Motion proposed by Cllr S Gibson, seconded by Cllr James Vitali and supported by Cllrs Monks, L Beddow, J Somper, T Coombs, M Parkes, A Parry, S Flower, P Brown, V Pothecary, A Skeats, S Jespersen, R Bryan, J Haynes, B Quayle, B Goringe, S Murcer

 

Motion Narrative and Action Required

 

Dorset, like the wider United Kingdom, is experiencing difficult economic headwinds that are negatively impacting our local economy and our businesses. A combination of stubbornly low growth rates, increasing cost of employment and darkening global trading conditions are causing widespread concern. A recent report by the Institute of Chartered Accountants highlighted plummeting business confidence. The number of new businesses registrations has reduced and winding up orders increased to the highest level since the financial crash.

After the Spring Statement, the OBR halved its growth forecast for 2025 from 2.0% to 1.0%. And since inflation has regularly outpaced growth in recent years, real living standards are deteriorating, which for businesses means less consumer demand even whilst their own prices are rising.  Growth rates have been historically low in recent years and once population increases are considered, GDP per capita has actually fallen. Economic growth in Dorset sits below the regional average and the national average. Dorset has a productivity deficit. Our ageing population and reducing number of younger people further exacerbates the issues facing businesses and their ability to grow.

Increases to employers National Insurance Contributions, reductions in Retail, Hospitality and leisure business rate relief, increasing energy costs and global tariffs have made life increasingly difficult for our businesses and the families that rely on them for income and employment.

A thriving economy allows businesses to grow, to hire more staff and to pay better wages. Confident businesses invest in their infrastructure and better train their employees.

Dorset Council is well placed to show leadership and support for our businesses and local economy. As we produce our next Economic Growth Strategy, we must look urgently at anything that the Council can do to improve growth, support businesses and jobs.

 

Motion

 

Dorset Council therefore commits to: Declare an ‘Economic Emergency’ that requires urgent action.  Furthermore, the Council commits to:

1.    A thorough and urgent review of all existing Council policies to more fully assess the impact on economic growth in Dorset and the impact on local businesses and jobs.

 

2.    Ensuring that all future major policy has a more detailed assessment of the various economic factors included in the reports similar to the successful Climate Change ‘colour wheel.’

 

3.    Establish a permanent Executive Advisory Panel that will meet regularly, on a cross party basis, to build upon the work of the task & finish group that has been supporting the forthcoming Economic Growth Strategy.

 

4.    Create a strategy for Business Rates that seeks to grow the number of businesses across the Dorset Council area. With consideration given to a percentage of any increase in business rate revenue being set aside to improve our local economy, our highstreets or offer increased rate relief to struggling businesses.

 

5.    Increase the capacity of the Economic Development team to ensure that economic factors can be considered more fully across the council and to enable more input into planning applications.

 

6.    Work to ensure that economic growth is prioritised across Dorset, including in rural areas.

 

7.    To speed up the work of the Market Town/ Highstreet Strategy to allow for regeneration of our town centres.

 

8.    An annual scrutiny review of the Economic Growth Strategy and action plan.

 

9.    Working with the business community, business representatives and locally elected representatives to lobby for better business support for Dorset and to ensure that the Government prioritises Economic Growth and support for businesses of all sizes.

 

In accordance with procedure rule 14.3 (a) the Notice of Motion, upon being proposed and seconded was opened for debate by Full Council.

 

The Cabinet Member for Property, Assets and Economic Growth proposed the following amendment, and this was seconded by Cllr S Clifford

 

Amendment

 

DELETE

 

Dorset Council therefore commits to: Declare an ‘Economic Emergency’ that requires urgent action. Furthermore, the Council commits to:

 

INSERT

 

Council notes that we are committed to placing Economic Development at the heart of its agenda and recognising the urgency of the challenges and opportunities ahead, is taking decisive action to unlock growth, attract investment, and create high-quality jobs. 

To deliver on this ambition, Dorset Council sets out the following key commitments:

 

DELETE ITEMS 1-9

 

INSERT

 

1. Stimulate and Accelerate Economic Growth

We will identify and prioritise transformative projects that unlock Dorset’s economic potential, focusing on clean energy, advanced manufacturing, and regeneration of key population centres. This will be delivered through the ambitious new Economic Growth Strategy, with progress monitored by the cross-party Executive Advisory Panel to ensure alignment with the Dorset Council Plan 2024–2029.

 

2. Attract Strategic Investment

Dorset will be positioned as a high-value investment destination by leveraging the ‘Energising Dorset’s Economy’ prospectus and working closely with the Dorset Growth Board and the new Arm’s Length Investment Company. We will actively promote Dorset’s strengths in clean energy, defence, and innovation to secure inward investment and catalyse economic transformation.

 

3. Create High-Value, Future-Ready Jobs

We will support the creation of highly skilled, well-paid jobs by collaborating with Dorset’s advanced engineering and manufacturing sectors. This includes ensuring training provision is aligned with industry needs and embedding STEM skills early in education. Our goal is to future-proof the workforce and raise productivity across the county.

 

4. Lead Strategic Negotiations

We will define and advocate for Dorset’s economic priorities in negotiations with government and regional partners. This includes lobbying for devolution opportunities and leveraging our new Local Visitor Economy Partnership accreditation to demonstrate Dorset’s readiness for growth. Our approach will ensure Dorset’s voice is heard and its potential realised.

 

In response to a point of order, the Director of Legal and Democratic confirmed that the amendment before Council was valid under procedure rule 17.6. It involved the deletion of certain words, the addition of others and remained substantially within the scope of the original motion.

 

Therefore, it was a proper amendment, and it did not negate the motion.

 

At this juncture, the Chair adjourned the meeting to give all members an opportunity to read the amendment in full.

 

Following the adjournment, the Chair invited that proposer of the original motion to address the meeting.

 

With the support of his seconder, Cllr S Gibson sought to withdraw his motion as, in his view, the proposed amendment substantially changed his original motion.

 

The motion was withdrawn.

 

At this juncture Cllr A Parry indicated his intention to withdraw from the meeting, at which point the following members also took their leave; Cllrs L Bedow, P Brown, R Bryan, S Christopher, T Coombs, P Dickenson, N Eysenck, S Flower, S Gibson, B Goringe, J Haynes, S Jespersen, C Jones, N Lacy-Clarke, C Lugg, C Monks, S Murcer, M Parkes, B Quayle, J Robinson, D Shortell and J Vitali.