Public Services Reform Policy and Accountability Committee July 2021: Brexit update - Not In Use

Public Services Reform
Policy and Accountability
Committee July 2021:
Brexit update

Background
On 19 October 2019 the United Kingdom and the European Union
published a revised Withdrawal Agreement setting out arrangements
for the UK’s departure from the EU.
The agreement was approved by the UK Parliament on 22 January 2020
and implemented into UK law via the EU Withdrawal Agreement Act
(2020). The agreement was also approved by the European Parliament
on 29 January 2020.
The transition period lasted until 31 December 2020 where the UK
continued to pay into the EU budget and continued to apply almost all
EU law including new EU laws.
Following the transition period, EU laws were transferred into UK law.
Future UK legislation may choose to keep, amend or delete existing
legislation.
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Issues for Hammersmith & Fulham
• EU Settlement Scheme
• Children in care and care leavers
• Council workforce
• Supplier/ contractor workforce
• Trading standards
• Other support to local businesses
• EU funding
• Other issues
• Wider economic impact
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EU Settlement Scheme
• Allows those resident in the UK under previous EU law to
  obtain a status under the UK’s Immigration rules
• Deadline now passed (30 June 2021)
• Latest Hammersmith & Fulham statistics provided to 31
  March 2021 (issued 1 June)
     Concluded
    applications                Settled               Pre-settled            Other outcomes
       42,710                   20,250                  21,340                   1,120
Latest ONS estimate of borough population born in the EU 27,000 (year-ended June 2020 , published
January 2021)
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Children in care and care leavers
• Local authorities are required to ensure that EEA children in
  care are identified and assisted to make applications under
  the EU Settlement Scheme
• Children’s Services worked proactively to identify and
  progress applications. Eleven looked after children and care
  leavers identified: six have been granted settled status; four
  applications are still being processed; one refused.

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Council workforce
• No significant internal workforce issues experienced to date
• A-rated sponsorship license (to be renewed October 2024)
• Five sponsorship certificates: one currently assigned and one
  pending assessment
• Should a candidate without the right to work in the UK be
  successful and appointable, eligibility for sponsorship through
  the skilled worker visa guidance assessed
• Once an individual is onboarded the right to work status and visa
  expiry dates are monitored through system notifications and the
  Strategic resourcing team
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Supplier/contractor workforce
• Brexit expected to particularly impact construction,
  hospitality, care and retail sectors
• Twin impact of Covid and Brexit on workforce has meant it is
  difficult to isolate the impact of Brexit
• Social Care – Brexit impact is not known, during the
  pandemic the workforce has been bolstered supply as a
  result of hospitality closures due to Covid restriction, officers
  will continue to monitor the impact as the restrictions ease

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Trading standards
• Trading Standards staff have attended a series of seminars on the major
  business changes as a result of Brexit
• Officers have access to the Chartered Trading Standards Institute specialist
  enquiry service for technical enquires
• The service is able to offer advice and guidance to businesses and signpost
  national guidance such as the ‘Brexit Checker’ website and guidance from
  the Chartered Trading Standards Institute
• Low number of service requests to date, expectation businesses are using
  government website or trade associations
• The website includes a Brexit information page for local businesses Doing
  business after EU transition period | LBHF

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Other support to local businesses
• Economic Development service have promoted seminars and
  webinars relating to Brexit, including an event from a business advisor
  from the Government’s Brexit Department
• Business advisors have been available to provide advice and support
• Events held to support businesses adapt to new trading
  arrangements, including from Federation of Small Businesses, West
  London Chamber and London Business Hub promoted via the H&F
  Business newsletter, H&F business social media platforms, council
  web pages and the Business Network
• Economic Development service has circulated and disseminated
  online advice and toolkits
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Local businesses impact
Brexit Resilience Survey May 2020
Three key areas causing anxiety for businesses in the borough:
• Uncertainty around the future trading arrangements - concern around growth and borrowing
• Fear of racist or xenophobic abuse or violence in light of the increase of attacks post
  referendum
• EU business owners were concerned over their right to continue trading in the UK and
  Freedom of Establishment and Services

Anecdotal evidence - Business Network July 2021
How Brexit has affected businesses in the borough to date:
• The end of freedom of movement has caused significant issues in recruitment for the
  hospitality sector, with UK workers not taking up the roles previously occupied by EU
  migrants
• Businesses involved in imports and exports have had their supply chains disrupted, with the
  extra red tape and paperwork adding delay
• Businesses have had problems getting advice from government, particularly HMRC
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EU funding
• EU structural funds will continue until the closure of the 2014-20
  programmes in 2023.
• Government commitment to at least matching EU receipts through
  the new UK Shared Prosperity Fund to be launched in 2022.
• Vision will be set out in the UK Shared Prosperity Fund Investment
  Framework (expected later in 2021). Expected to be two elements:
    • place-based to target places most in need across the UK
    • targeted to people most in need through local employment and
      skills programmes.
• In preparation for the UK Shared Prosperity Fund the government
  launched the Community Renewal Fund for 2021/22 (£220m).
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Other issues
Procurement and contracts
• Review of business continuity plans completed focussing on reliance on suppliers, and
  suppliers on supply chains and the possible impact of a no deal Brexit (now no longer a
  risk).
• Training provided to relevant Council staff on changes to Procurement Regulations

Data protection
• The EU Commission approved an adequacy decision for the UK on 28 June 2021
• Personal data will continue to flow freely to the UK from suppliers (data processors)
  within the EU and European Economic Area without the need for further more onerous
  transfer mechanisms, or changes to our data protection practices.
• In relation to data processed in the EU, UK businesses can continue as normal.

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Wider economic impacts
• Twin challenges of Covid and Brexit difficult to separate
• Trade deal meant no cost increases in relation to quotas or
  tariffs
• However, price inflation pressures (particularly construction
  and capital projects) due to:
    • Workforce availability/ shortages
    • Materials costs/ shortages
• Wider impact of increased demand for local authority
  services in an economic downturn, real terms reductions in
  local authority funding, losses of revenues
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