Express & Star

Region’s funding fear as Brexit looms large

Brexit could bring a loss of funding for local government and a shortage of social care nurses in the West Midlands, according to economists.

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The West Midlands, including Shropshire, is facing a loss of funding and a shortage of nurses when Brexit takes place

The economic and social impact of Brexit on the West Midlands has been assessed by the West Midlands Economic Forum, based in Aldridge.

With Britain currently poised to leave the European Union on March 29 the research identifies trade, jobs, business, funding and the public sector as the five key areas to be affected in the region.

The forum was asked to look at potential impact on trade and business, employment, funding, infrastructure and public services in the wider West Midlands, which includes Shropshire.

Councillor Brigid Jones, the deputy leader of Birmingham City Council which commissioned the report, said: “The West Midlands has a bigger population than nine member states including Finland, Slovakia and Ireland.

"The economic output of the West Midlands is bigger than 13 member states including the Czech Republic, Hungary and Romania. The significance of our presence and the importance of Brexit working for this region is clear.”

The report suggests there is the potential for a reduction of up to 13 per cent in the regional economy from Brexit which may possibly lead to an increase in pressure on local authority services.

Vulnerable

On trade a major concern is how changes to customs arrangements, tariffs and regulations will affect the regional economy, particularly advanced manufacturing. There is also a worry about what Brexit will mean for continued investment into transport infrastructure, broadband, housing and business investment, given the need to sustain international competitiveness.

Employment sectors considered particularly vulnerable to Brexit, include automotive and those in its the wider supply chain. The automotive sector is of particular concern for the region, given that only 40 per cent of components are sourced locally which makes it vulnerable to supply interruptions and delays. Health and social care are also of concern, with one in 10 social care nurses currently EU nationals.

Birmingham alone has benefited from more than £1 billion in EU funding and the loss of this resource is considered to have an impact on key priorities for local government such as skills training.

With the West Midlands more export-oriented than other parts of the country – 40 per cent of regional merchandise exports are to EU destinations – it is considered essential the region has formal input into future trade negotiations.