Areas such as procurement; state aid; employment; immigration law; information law and human rights will largely require a business as usual approach for the time being – but in due course we may only see a gradual watering down of obligations and reduction in ‘gold plating’ of obligations.

 

Wholesale change may not be helpful for business, struggling in a new economic environment. Whether we can negotiate to remain etc in the European Free Trade Agreement will determine what other controls will remain. Free movement of workers is likely to be the trade-off which may or may not be acceptable to the UK.

 

Local authorities may feel the brunt of another recession with reduced council tax and business rates, and increased demand for services and welfare support – just when the consultation on business rates retention has been announced by Greg Clark.

 

With all the uncertainty perhaps there has never been a more important time to look at the impact that all these measures will have on the local economy and how local authorities may promote their own areas to pursue economic growth for the long-term (either on their own or jointly through combined authorities). Devolution deals, investment in transport and infrastructure as well as local investment, in partnership with LEPs or local businesses, are needed to balance the reduction in inward investment from elsewhere, to create jobs and meet

housing and other demands. Our balance of trade deficit with Europe currently runs at around £8bn per month and that has an impact on our outstanding national debt. How can local authorities help to reduce that deficit?

 

Local spend is important in this context, seeking to ensure that more money is spent and re-spent in the local economy. It is therefore surprising that only around one third of authorities have sought to implement the Social Value Act into their commissioning and procurement activity and to support local supply chains.

 

So while our future relationship with Europe is still very uncertain, we need to continue with business as usual, but also consider how best to ameliorate the impact that a recession may have on our local economies by considering investing in our homes and infrastructure to deliver jobs and benefits for local populations.