Strong local gov pessimism about the impact of Brexit

A survey of all council leaders and chief executives has found exceptionally strong pessimism about the impact of Brexit.

According to the New Local Government Network, 61 per cent of leaders and chief executives believed Brexit would have a negative or very negative impact on their local economy, whilst only 12 per cent believed it would have a positive impact or very positive impact.

Regionally, the North East proved the most pessimistic with 100 per cent of council chiefs expecting a very negative or negative outcome, while council leaders in the South East were the least pessimistic about UK withdrawal with 48 per cent believing Brexit would have a negative or very negative impact on their local economy.

Adam Lent, director of the New Local Government Network, said: “Councils continue to face unprecedented financial pressures and growing uncertainty regarding their future funding. Weaker local economies would lead to a lower ability to raise revenue through business rates – something which local services will increasingly come to rely upon. This means there is a real risk that local tax payers will be left picking up the bill – either by significant raises to council tax, or the reduction in the services that councils can deliver.”