Agenda item

Brexit Preparations in Croydon

Meeting of Cabinet, Monday, 10th December, 2018 6.30 pm (Item 107/18)

Officer: John Montes

Key decision: no

Decision:

The Leader of the Council delegated to the Cabinet the power to make the decisions set out below.

RESOLVED to:

1. Note the potential impact and responses to Brexit in Croydon, as set out in the report;

2. Endorse the statement that ‘Croydon is open’ for business and that everyone in our diverse communities is welcome;

3. Authorise officers to make arrangements to keep EU citizens in Croydon aware of the EU Settlement Scheme and work with our partners to ensure those who need it have access to support to apply for settled status;

4. Note that the Council will pay the application fee for Council employees earning less than £35,000 and their partners and children seeking settled status and encourage contractors to do the same;

5. Ensure businesses are aware of the EU citizens’ rights to residency and employment as they are confirmed;

6. Agree that regular updates be provided to all councillors and relevant stakeholders for each of the key categories outlined in the report; and

7. Support the Mayor of London’s #LondonIsOpen campaign and #CroydonIsOpen campaign.

Minutes:

The Leader stated that Brexit potentially had a huge impact on Croydon and that it was important to ensure the message of #CroydonIsOpen is well promoted, along with the Mayor of London’s #LondonIsOpen campaign.

Members were informed that there were a number of concerns due to the delay in the vote on the Brexit deal by the House of Commons, funding for local government, the fall in value of sterling, and the anticipated additional pressure on the NHS and care market in terms of recruitment. The Leader stated it was important that the council’s concerns were registered with ministers to ensure they were taken into account.

Whilst it was noted that the landscape was bleak; there had been an excellent economic summit in Croydon in November at which an RBS representative spoke about how Croydon was well positioned to withstand the potential impact of Brexit on the economy. It was felt that Croydon was reasonably well shielded from the immediate impact; however recruitment remained a concern particularly in the care, hospitality and construction industries; and as such the council would work closely with the sectors in the borough to support them. The Leader informed Members that regular updates would be available on the impact and work that was being undertaken to mitigate it.

The Leader of the Opposition welcomed the paper as it was important to begin contingency planning; however stated that it was important that the administration recognised the national party was at odds with each other whereas it had the opportunity to make a positive impact on Brexit. In response the Leader of the Council noted that the Government had been found in contempt of Parliament, had delayed Parliament’s vote on the deal and postponed the decision on the local government funding settlement. The Leader further informed Members that the council had taken the matter very seriously.

In response to Member questions the Leader informed Members that no suppliers had formally requested more money for current contracts. Additionally, the Cabinet Member for Finance & Resources noted that freedom of movement included goods and services; however the drop in the value of sterling had seen suppliers increase charges for services such as SEN transport. With the anticipated recruitment pressures in the care market it was assumed there would also be an increase in the cost of care. The Cabinet Member for Families, Health & Social Care further noted that the care market had reached a tipping point in 2016 and the pressures experienced in the sector had only increased.

Whilst it was noted that pressures had been experienced in the care sector, the Cabinet Member for Economy & Jobs informed Members that an employment and training event had been organised to take place that week in Thornton Heath with local social care organisations to support the sector.

Members welcomed the report and the strong message that the council valued the contribution of the 28,000 EU residents in the borough. The support that had been provided to staff who were EU nationals was further welcomed as an example of the positive steps the council was making in supporting those affected, and it was hoped that other employers would take note of the approach.

Concerns were raised, however, regarding the cost of the preparations and whether there had been any indication from the Government regarding the support available to councils. The Leader informed Members that there was no confirmed figure for costs; however they would be considered in future.

Further concerns were also raised given the rise in hate crime following the EU referendum, and as such Members noted that the #CroydonIsOpen campaign was important in showing that the council supported all communities.

Members noted that at paragraph 8.25 of the report EU funded projects which had benefited Croydon residents were listed and covered extensive and important areas. It was suggested that the level of detail on the impact of leaving the EU was not clearly available during the EU referendum debate, and that it was important that the information was widely available. The Cabinet Member for Economy & Jobs confirmed there were a number of projects which had been funded by the EU, including those who supported vulnerable communities to enter employment.

In response to Member questions the Cabinet Member for Finance & Resources clarified that the Pension Committee had gifted the council interest in affordable homes and that in 40 years the properties would transfer to the pension fund. The investment had full protection, and if there variations in property values then it would be taken into consideration as part of the triennial review. Members were also informed that pensions were fully protected by the council.

The Leader proposed, and Cabinet supported, amending recommendation 1.7 to include the #CroydonIsOpen campaign.