Agenda item

Consider report by Chief Executive setting out the implications of UK Referendum Vote to leave the European Union for the Scottish Borders and outlining how issues are being addressed (copy attached).

2.1       There had been circulated copies of a report by the Chief Executive setting out the implications of the UK Referendum Vote to Leave the European Unionfor the Scottish Borders and Scottish Borders Council and outlining how issues arising from this outcome were being addressed.  The main implications related to : financial issues for the agricultural sector and for rural, regional and local economic development arising as a result of losing access to EU funding streams in the longer term; lack of access to major funding for economic development that may have arisen through the Southern Scotland NUTS 2 proposal; significant number of export orientated businesses in the Scottish Borders needing continued access to the Single European Market for trade purposes; and uncertainty of the long term status of the approximately 3,500 EU nationals living in the Scottish Borders.  The report explained that, since the vote, the UK Government had taken actions which had sought to mitigate some of these issues.  It had announced continued support for the farming sector on the same basis as the EU Common Agricultural Policy (CAP) up to 2020.  Funding commitments had also been given for EU funded structural and investment projects signed after the Autumn Statement 2016 and which would continue after the UK had left the EU. In terms of the way forward, the Council Leader had recently written to the Prime Minister to raise the concerns of Scottish Borders Council and local businesses following the Referendum Vote.  The South of Scotland Alliance also met with South of Scotland MSPs on the 28 September 2016 and discussed the implications of Brexit for the economy of the South of Scotland.  The Alliance intended to meet Scottish Members of the European Parliament from the main political parties to discuss the Southern Scotland NUTS 2 proposal and develop an advocacy strategy on this matter.  

2.2       In the ensuing discussion Mr Henderson reported that, in research carried out since the vote, there were two additional implications not included in the report about which members of Federation of Small Businesses (FSB) were also concerned.  One issue was access to seasonal workforce essential for the operation of certain businesses and also there was concern about the knock-on costs of additional work to comply with regulations for export to different countries if the UK did not remain in the single market.  Senior Policy Adviser, Douglas Scott, agreed to engage with Mr Henderson to take into account these points in the strategy being taken forward.  It was recognised that there were still opportunities to influence the debate over the conditions of exit from the EU and to shape the future.  Members referred to the significant challenge of the negotiations. It was emphasised that the Council should co-ordinate an ongoing lobbying strategy with organisations such as FSB, Chamber of Commerce, NFU and Higher Education establishments and Members agreed to add this to the recommendations.  It was also agreed that the concerns of Scottish Borders Council on the implications of the UK vote to leave the EU and how these were being addressed should be incorporated into a press release.                          

DECISION

(a)        NOTED the report and work already being carried out to highlight the implications for the Scottish Borders of the UK vote to leave the EU.

(b)       AGREED that the Council:-

(i)            support the South of Scotland Alliance to develop an advocacy strategy focused on securing special status for the South of Scotland in relation to future regional policy, so that the economic challenges facing the area were appropriately addressed; and

(ii)          work with other stakeholders in creating and executing a lobbying strategy.