Local councils across the country are not ready for Brexit, MPs have warned.
And the Government must take “urgent action” to ensure they can cope when the UK leaves the EU - whenever that is.
The warning came in a report from the Housing, Communities and Local Government Committee, a cross-party group of MPs including Liz Twist, MP for Blaydon.
It was based partly on evidence provided to the inquiry by Helen Dickinson, assistant chief executive of Newcastle City Council, who travelled to London to give answer questions from the MPs.
She told them the city was concerned about what would happen to vital funding it currently receives from the EU, saying: “EU structural funds have been crucially important for regions such as Newcastle and the North East.”
Ms Dickinson told the inquiry: “To put in context the scale of funding we receive from them at the moment, we would have expected to receive around £80m for Newcastle over the period from 2014 to 2020 ... that funding is really critical to our ability to support our local economies.”
The Government has promised to replace EU funds with a new national scheme, but Newcastle City Council says this doesn’t guarantee it will receive the same amount as it does now.
The EU has traditionally channelled funding to less wealthy areas while the UK government often uses a different method of allocating funding and makes councils bid for a share of the cash.
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Newcastle has also warned that it could suffer a skills shortage if tougher immigration controls are imposed after Brexit, which will happen if freedom of movement ends.
In a written submission to MPs, the city council said: “As well as boosting the local population, migration has increased the availability of skilled workers in industries and occupations that are experiencing shortages.
“The North East is particularly reliant on migrants to fill highly skilled positions, especially in rapidly expanding industries.
"Any reduction may compound demand for skilled labour and restrict economic development because migrant employment patterns are already concentrated in key sectors driving growth nationally and locally.”
The Committee said the Government must take steps to address workforce shortages in the short term, ensuring EU nationals working in the UK are made aware of and encouraged to apply for settled status.
It called on the Ministry for Housing, Communities and Local Government to monitor industries at risk of workforce shortages, including construction and social care.
The Government must also ensure a comprehensive range of planning, guidance and support is put in place for local authorities in the event of no-deal Brexit, the MPs said.
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And the MPs said the Government must “urgently” carry out a long-awaited consultation on the replacement for EU funding, to be called the UK Shared Prosperity Fund, so that councils know what to expect.
Funding levels must match or exceed the equivalent levels of EU funding which is currently provided to local government, the MPs said, and regions must be provided with as much as they would have received from the EU if Brexit wasn’t taking place.
Committee Chair Clive Betts MP said: “Whatever form of Brexit is finally decided upon, local authorities will play a key role in ensuring as little disruption as possible to people’s day-to-day lives.
"They have the local knowledge and experience to identify likely problems and create workable solutions, yet the Government is not giving them sufficient support to do this, nor is it adequately seeking their input to identify problems and inform their planning.”
A Ministry for Housing, Communities and Local Government spokesperson said: “The select committee recognises the Government’s work to help councils prepare for Brexit and we continue to engage with them so they are kept well-informed.
“We have updated national guidance to support them with any decision-making they may need to take and are also providing over £58m to ensure they can provide their communities with the support they may require.”
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