Agenda item

To consider the potential impact of Brexit on the Council, its companies and key stakeholders across the Borough.

The Committee considered a report, set out at Agenda pages 13 to 17, which gave details of initial assessments of the impact of Brexit on residents, the Council and its services.

Graham Ebers (Director of Corporate Services and Deputy Chief Executive) and Rhian Hayes (Acting Category Manager, Economic Prosperity and Place) attended the meeting to present the report and answer any Member questions.

The report stated that, although final decisions on Brexit were yet to be taken, all local authorities and other public bodies were preparing for potential impacts and identifying mitigation plans where necessary and appropriate.

Initial assessments indicated that the Borough did not face any locally significant risks from Brexit (e.g. risks faced by major ports) and that any impacts would be generic to those experienced across the UK.

Potential issues facing the Council were:

·           Possible reduction of EU nationals in the workforce, for example in the health, care, hospitality, construction and retail sectors.

·           No further access to EU funding streams – the Council had received £147k in EU funding over the past three years relating to the Elevate Skills and Employment Service. This project was due to come to an end in June 2019 and the existing funding was not considered to be at risk.

·           Impact of a potential economic downturn – a number of studies had predicted that there may be an economic downturn triggered by Brexit especially following a “no deal” Brexit. The likelihood of a no deal outcome had increased following the defeat of the Government’s proposed deal in the House of Commons. The Borough had a high percentage of EU and other foreign-owned companies which may make the local economy more vulnerable to reduced business investment due to uncertainty and more challenging trading arrangements.

In order to strengthen the Council’s preparations for Brexit a number of measures were being implemented, viz:

·           Establishment of a corporate Brexit Officer working group to monitor the Brexit process, Government advice and any local impacts;

·           Working in partnership with Local Resilience Fora to report progress back to the Government;

·           Working in partnership with the Thames Valley Berkshire Local Enterprise Partnership (LEP) to develop mitigation actions;

·           Engagement with local businesses and suppliers to understand the challenges they face from Brexit – especially foreign owned businesses and businesses involved in the import/export of goods and services. 

The Officer working group would continue to monitor events up to Brexit day on 29 March 2019 and the transition period to December 2020 depending on the final decisions relating to Brexit and the UK’s future relationship with the EU.

In the ensuing discussion Members raised the following points:

In relation to the impact on the workforce, was there any data on the number of EU nationals who had already left the Borough?

It was confirmed that, nationally, the number of EU citizens coming to the UK to work fell from 82,000 in 2016 to 37,000 in 2018. The most recent Census data indicated that there were 4,350 EU nationals living in the Borough. Evidence from the Council’s suppliers indicated that there had been a reduction in EU nationals in the workforce, but that the reduction was manageable. Members noted that the reduction in numbers entering the UK could also be influenced by other factors such as the weakness of the £.

What was the likely impact of Brexit on the current procurement regime?

It was confirmed that, at present, there was no clarity on this issue. The current arrangements (OJEU) were considered by some to be bureaucratic and time-consuming, so there may be an opportunity for the Government to introduce a more streamlined process post Brexit.

How much additional money was being spent on the Council’s Brexit preparations?

It was confirmed that the work carried out to date was being met from existing resources. The Council was taking a prudent approach and seeking to link in to existing networks where possible.

What other resources and data sources were being accessed in order to analyse the wider impact of Brexit?

It was confirmed that the impact of Brexit was discussed at the regular scheduled meetings of the Berkshire Unitary Chief Executives. The Council also produced a 6-monthly analysis of economic facts and figures which was published on the Council’s website. In addition, Officers were regularly in touch with local businesses in order to understand their views on Brexit. These discussions indicated a range of responses to Brexit. Some companies were making detailed contingency plans while others were waiting to see the final outcome of the process.

What advice and support was the Council offering to the 4,000+ EU nationals living in the Borough?

It was confirmed that the Council’s suppliers had indicated that they were assisting employees with advice and support relating to the process for remaining in the UK. The issue of advice and support to Council employees and the wider group of EU nationals in the Borough would be considered by the Council’s Officer working group.

Were there any Brexit implications for the Council’s overseas financial investments?

It was confirmed that the Council’s strategy was to make “Triple A” rated investments and to ensure that those investments were secure. Any potential risks arising from Brexit would be closely monitored by the Council and its expert advisers.

Was there any data on the number of companies in the Borough engaged in haulage or the movement of goods outside the UK? What additional risks were these companies facing?

It was confirmed that there was no specific data on this local business sector at the moment, but the matter would be considered by the relevant Officers.

RESOLVED That:

1)     Graham Ebers and Rhian Hayes be thanked for attending the meeting;

2)     the update on preparing for Brexit be noted;

3)     the additional measures put in place by the Council to monitor and plan for potential outcomes, including the Brexit Officer group, be supported;

4)     the issues raised by the Committee be referred to the Brexit Officer working group for consideration;

5)     the Committee receive a further update on Brexit at a future meeting when there was more clarity on the final outcome.