Worry on Brexit and its impact

Cllr Abdul Jabbar

PASSIONS were high in the council chambers as councillors discussed the EU referendum result and the impact it will have on Oldham and Greater Manchester.

Councillors noted a report which set out that while there is a degree of certainty on existing European Structural and Investment Fund grants Oldham benefits from in the current 2014-2020 programme, contracts beyond then will be in doubt.

Councillor Abdul Jabbar said that one Oldham project which could be affected in the future is the European Social Fund Skills for Employment contract which provided £640,000 until December, 2017, to support Oldham residents into work.

A significant number of non-public sector providers, such as education, skills and the voluntary sector, who also benefited from programmes with EU funding, are also facing an uncertain future.

Despite the period of uncertainty, Oldham councillors agreed that the result of the referendum must be accepted and it was now important to act to guarantee a successful future for residents.

Councillor Shaid Mushtaq said: "We will fight tooth and nail for this borough and for the people of this borough."

Councillors also hit out at the EU referendum campaigns themselves, with Councillor Garth Harkness saying people had been "misled" by false promises but said it was now time to address the concerns raised by those who voted to leave the EU.

Changes

Councillor John Hudson said: "This report on the impact of leaving the EU will have many changes before we know exactly how Oldham will be affected and when we have more information we have to take action."

During the discussion Councillor Howard Sykes proposed that a cabinet member should be given the responsibility of examining the impact of Brexit on Oldham to ensure the council can take action when it needs to.

This view was shared by council leader Jean Stretton who gave the responsibility to Councillor Jabbar.

Commentators have also warned that local government could see a reduction in funding should business rates and growth slump.

The report said: "This is of concern for the council as it works towards bridging the already significant budget savings requirement for 2017/18 and future financial years.

"Any further reduction in Central Government funding and even greater instability would increase the financial pressure on the council."

The report added that it is important for Oldham to "continue to provide a message of confidence to the business and investor community."