The Regeneration Funding and Regional Engagement Team Leader presented the report of the Interim Chief Executive on the potential impact of Brexit and on preparations being undertaken within the Council and to help inform future Council decision making.

She reported that following the majority vote to leave in theUnited Kingdom European Union membership referendum on 23 June 2016, the UK government has been working towards departure from the European Union (EU) on 29 March 2019.  She stated that the Withdrawal Act 2018 which is now law provided for all EU law to be brought into UK law to ensure that there was legal certainty for businesses and residents.  The UK Government has sought to secure a deal (the Withdrawal Agreement) with the EU that covers its forward relationship, level of participation with the EU’s Single Market and Customs Union.  She stated there was currently no deal in place and therefore little clarity existed on the exact impact this will have on the Council and wider Bridgend County Borough. 

The Regeneration Funding and Regional Engagement Team Leader informed Cabinet that the Government would be making a request to Parliament for an extension to Article 50.  However at the present time, the default position remained that the UK will leave the EU on 29 March 2019. 

The Regeneration Funding and Regional Engagement Team Leader reported that the Council has established an internal cross-directorate Brexit Forum, chaired by the interim Chief Executive.  The remit of the Forum is to explore the potential impact of Brexit on service delivery along with actions to mitigate against risks and will also explore any potential opportunities that might arise from Brexit.  She stated that a risk assessment has been developed, with its content informed by service area leads working within the Forum.  It also drew on collaborative work with both local authorities across Wales and other key partners.  She stated that the risk assessment is very much a live document, and provides a snapshot of work at a specific time.  The assessment continues to be further developed and is reviewed formally at each meeting of the Brexit Forum.  She also informed Cabinet that a Brexit Preparedness Toolkit, produced by the WLGA in partnership with Grant Thornton, as part of their Brexit Transition Support Programme, has proven a useful aid in the work to understand the potential risks and opportunities that Brexit posed.

The Regeneration Funding and Regional Engagement Team Leader reported that some of the text in Risk 33 had not been produced and for completeness the following wording was added “provide opportunity to negotiate pricing, and not frustrate the contract.    

Treat -  As no WTO tariffs have been agreed, its estimated that food pricing will increase - minimum of 20% increase to the food budget is being suggested should be provided for."

The Cabinet Member Education and Regeneration thanked officers for the work undertaken in putting the risk assessment together.  He stated that it was the Cabinet’s position that the UK and County Borough would be stronger within the EU and that Article 50 should be revoked.  The Cabinet Member Communities also commended officers for the report and the planning for Brexit, which was constantly changing and had stretched the Council’s resources.  Work was being undertaken alongside South Wales Police regarding anti-social behaviour concerns which could arise from the withdrawal from the EU. 

The Cabinet Member Wellbeing and Future generations questioned whether some risks were greater than other risks.  The Regeneration Funding and Regional Engagement Team Leader informed Cabinet that a dashboard is being put together which has been taken up to a regional level due to the presence of a large number of international companies and the withdrawal of the UK from the EU could affect deprivation.  She also informed Cabinet that the Regeneration Team is working with social care colleagues in order to share best practice. 

The Leader questioned whether confirmation had been received that additional funding had been made available by the Welsh Government.  The         

Regeneration Funding and Regional Engagement Team Leader informed that the availability of additional funding had yet to be confirmed, but it was likely to be £45k per local authority. 

Cabinet requested that the additional dashboard information which had now been taken up to regional level be provided to look at the impact on businesses.    

RESOLVED:            That Cabinet:

1.      Noted the work being undertaken by the Brexit Forum;

2.      Considered the content of the risk assessment document, and

Agreed to receive further briefings as the detail on the implications of Brexit become clearer.