Cllr Jean Stretton, Leader of Oldham Council
Dear Cllr Stretton,
Re: Assessing the Impact of Brexit on Oldham Council and our Economy
I am sure that like me you were shocked and saddened by the Leave Vote in last Thursday’s referendum and fearful of the likely impact on our Council and our local economy.
In Oldham, we witnessed 61% of our local electorate choosing to vote Leave, a far higher percentage than nationally; as democrats, we have of course to accept the will of the people but, as practical politicians, we also now have to prepare for the consequences.
Given that Oldham Council has benefitted in the past from monies made available to it from the European Union to support both capital projects and revenue streams, I would be keen to find out from you what will be the impact of the withdrawal of this funding in money and in practical terms upon the delivery of both our regeneration programmes and our services.
Of course this analysis will not fully account for the impact as Oldham benefits indirectly from EU investment elsewhere in Greater Manchester; for example, in my own area of interest, as a committee member representing Oldham on Transport for Greater Manchester, I am very conscious that a £10.8 million grant secured from the European Regional Development Fund has helped improve Metrolink services in the conurbation.
It has been estimated that up to 3,000,000 jobs in the United Kingdom depend upon British businesses being able to have unfettered access to the Single European Market.
Business leaders and economists have expressed concern at the prospect that this market may now be subject to the imposition of red tape and tariffs, even assuming that there is a satisfactory conclusion to the protracted bi-lateral trade negotiations, that may take up to two years, between London and Brussels. This could lead to businesses in the UK ceasing to trade or relocating to countries which remain within the EU.
Furthermore, withdrawal from the European Union may mean the imposition of quotas or restrictions on the number of Europeans permitted to enter the UK to secure employment.
Oldham’s economy will not be immune from the impact of the new situation in which we find ourselves. For example J D Williams and Shop Direct, both large employers in my own ward, are reliant upon being able to recruit workers from European nations to fulfil their labour requirements; this brings in revenue to our borough as these workers settle here and contribute to our local economy. I am concerned that these employers may soon struggle to fill vacancies unless these can be attractively marketed to local residents.
I would like therefore to ask you for an assessment of the likely impact on Oldham’s economy, both immediate and long-term, of the Leave vote.
Given the importance of this matter and the immediacy of full Council on 13th July, I would like to request that a report be prepared by officers for circulation to elected members within the Green Book and that time be made available within the agenda to debate it.
Yours Sincerely – Howard Sykes