Minutes:
The Chairman noted that Co-opted Member R Morris had submitted a question and asked her to share this with the Committee.
R Morris asked with Brexit seven months away, is Durham carrying out an assessment of how it could be affected by the UK’s departure from the EU and more specifically how it could be affected by a “No Deal” Brexit.
The Chairman thanked R Morris for her question and thanked the Corporate Director of Regeneration and Local Services, Ian Thompson who was in attendance to provide a response.
The Corporate Director, ReaL noted that Members would be aware of the complex nature of Brexit, and the recent articles in the press and media. He noted that Brexit had been a major topic of discussion within Local Government since the outcome of the public referendum and would affect many aspects of Council activity, in addition to the challenges already faced from “Austerity”. He reminded Members that Councils were awaiting the results of the Fair Funding Review and there was a lot of uncertainties and challenges ahead.
The Corporate Director, ReaL explained that Durham County Council (DCC) would continue to do what it has always done well, managing finances and maintaining quality frontline services, delivering at the local level. He added the Council would, through its regional roles and national influence, look to feed into policy in relation to Brexit. Councillors noted that the date, Friday, 29 March 2019 was set for the exit of the European Union, however, there would be a transition period put in place and how Local Government fitted into this would be very important. The Corporate Director, ReaL noted that while Government expected a Brexit “deal”, they had issued sector guidance, for example space and medicine industries, in relation to a “no deal” Brexit, including World Trade Organisation rules. The Committee learned that while the Council could help signpost businesses in terms of information, they themselves understood best where to get information from at this point as regards Brexit.
The Corporate Director, ReaL noted that the Council’s focus would be on frontline services and to support businesses, with the economy and jobs being the number one priority. He added that this would help build in more resilience against changes in the future and that work was ongoing with partners in the region, including other Local Authorities. He noted there were discussions within the many Officer Groups within networks such as the Local Government Association and the County Councils’ Network in terms of making the case for Local Government.
Members were reminded of the Government’s proposed “Shared Prosperity Fund”, noting that EU Funding was crucial in County Durham. It was explained there was a working group in Durham, with the Vice-Chairman of the County Durham Economic Partnership, Sue Parkinson chairing this group. It was noted a number of “asks” would be put to Government, and also a call to look beyond just cities and to base any funding on need.
The Committee noted that it would be also put that any funding should at least equal that received from the EU, noting County Durham having specific status as a “Transition Region” and therefore had its own separate allocation in addition to any successful bids to EU funding streams.
The Corporate Director, ReaL noted one element that would be sought in terms of the Shared Prosperity Fund would be for more flexibility in how funding could be allocated. He added these messages would also be communicated to Government via other networks and groups.
In terms of the business community, it was noted from the Federation of Small Businesses and the North East Chamber of Commerce were “getting on with business” and some were ensuring some levels of stocks in order to be able to deal with any potential issues in terms of supplies. It was highlighted that there is a strong relationship between the business community and Business Durham. The Corporate Director, ReaL noted that of around 17,000 businesses in the County, 450 exported to the EU, 300 exported to non-EU countries, and around 1,000 imported, with around 15% of businesses being involved in EU trade.
Members noted that all wanted certainty in terms of Brexit, however, until more information came forward it was business as usual for the Authority and businesses. The Corporate Director, ReaL noted there was some speculation in relation to testing within the EU Border in terms of compliance/regulation issues. He concluded by noting that the Council would continue to manage its finances and frontline services and also to work in partnership to help provide a coherent voice with other Local Authorities moving forward.
The Chairman and R Morris thanked the Corporate Director, ReaL for his response and attendance at the Committee.