FINANCE

Now is the time for clear thinking

With the EU referendum too close to call, Heather Jameson says the half-truths spread throughout the campaign have masked the real impact of the result on local government.

Almost a week today we head to the polls for the EU referendum – and even now it is looking too close to call.

As with recent elections, the number of undecided voters could tip the balance either way.

It is a referendum which has been fought on half-truths and hearts, leaving the public to follow their instincts rather than their heads.

So what will it all mean for local government? Aside from the obvious headaches caused by the last-minute decision to extend the voter registration deadline, of course.

What is clear – as both sides admit – is Brexit will have a detrimental impact on the economy. For a sector tasked with boosting economic growth and poised to survive on business rates, economic stability has got to be a major priority. As councils increasingly look globally as well as locally, retracting to an island nation is the last thing we should do.

Then there is the money we spend on our EU membership, which could head back to public services if we Brexit. It could, but the Government prioritising local government for extra cash seems unlikely, even in the post-Pickles era. That's before you consider the EU funding handed out to local authorities from Brussels.

Most of the arguments seem to have boiled down to immigration and the strain it puts on public services. But OBR figures suggest migrants have a positive impact on public finances – and public services would struggle to function without migrant staff. It's not long ago that many councils were advertising for social workers and care workers internationally.

As the Brexit brigade hype up anti-immigration fever, post-referendum – whatever the outcome – where does that leave community cohesion? With Louise Casey poised to deliver her latest report within weeks, local government can expect a new push on rebuilding our communities – and making xenophobia mainstream has not helped.

For me, the referendum is clear-cut. Why risk the economy for ‘sovereignty' in a world increasingly replacing control with cooperation? You only have to look at devolution to understand power goes to those most willing to give it up.

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