Agenda item

The Committee considered a report on the potential risks and arrangements for monitoring and managing the potential impact on the Council of the UK leaving the EU on 31 October 2019, or some other date with or without a withdrawal agreement. 

Since March, the Council was more informed on some of the detail in relation to Brexit.  This report aimed to set out the risks economically but most importantly to Guildford Borough Council’s services. Contingency plans had been put in place particularly to assist the vulnerable people in our borough as well as managing anticipated problems with the fuel supply chain.  The Council currently employed approx. 10% of EU nationals who will be applying for British Settled Status.  Historically, the Council had used a lot of agency staff but were now seeking to recruit UK based employees. 

Waste services only had enough fuel in reserves to operate over a 10-day period.  Waste collections and particularly garden waste collections would be reduced.  Of greater concern was the effect upon the elderly and those in residential homes.  The Council was therefore working with Surrey County Council, the NHS and the Police on how to most effectively assist the vulnerable via a coordinated response.  Those people suffering from food poverty in Guildford were also a highly vulnerable group.  Additional funding had been secured by government to assist the Council and discussions were currently being held on how best to use that money. 

During the debate, the Committee made the following comments:

·         Concerned regarding the anticipated gridlock on the roads from Guildford to Dover and noted that the Council was working with Surrey County Council regarding the impact upon traffic flows and putting in place plans to effectively manage it.

·         Noted that a contingency plan was currently being worked on with managers and the Leader of the Council was involved with that.

·         In relation to housing development, if Brexit were implemented there would be a fall in house prices as well as a loss of labour to build houses.  It was noted that some developers were already drawing back from their housing delivery requirements.  It was noted that the government had not yet introduced any relaxation in legislation in relation to housing delivery requirements. 

·         With potential shortages of food in supermarkets, people would therefore be less inclined to donate to food banks. 

·         Welcomed the fact that Guildford Borough Council was in a robust position given it was not reliant upon direct funding from the European Union (EU). 

·         Nationally, central government would have to look at how funding was secured in the future and was therefore concerned about how the Local Enterprise Partnership (LEP) funding might in turn be affected. 

·         Noted that Guildford Borough Council as part of its emergency planning had prepared to receive less and less from central government so that it could become self-sufficient.

·         Noted that the government had given funds of up to £35,000 to the council in the form of a grant in the event of Brexit.  Surrey County Council would receive more funding owing to the range of services it ran.  The financial risks associated with Brexit were aligned to a recession with loss of income anticipated from fees and charges, an increase in homelessness expenditure.  The emergency reserve fund equated to 3.7 million which the council may have to use in order to ensure a balanced budget was achieved.

·         Any information stored in a cloud on IT systems would no longer be permitted if the UK came out of the EU.  A new data centre was therefore being devised to overcome this issue.

·         The Chief Internal Auditor met with all the other Surrey Authorities, Police and NHS representatives on a weekly basis as well as working with council managers on developing a robust contingency plan in the event of Brexit.

·         Concerned that Parish Councils should be briefed on how to most effectively help their community in relation to any negative effects resulting from Brexit.

The Committee

RESOLVED:  

That the report outlining the potential risks and arrangements for monitoring and managing the potential impact on the Council of the UK leaving the EU be noted.

Reason for recommendation

To enable the Committee to consider the potential risks arising from leaving the EU and the scope of the project plan to mitigate or address the risks.