Agenda item

Consideration was given to a report of the Leader of the Council which set out a summary of the implications of leaving the EU on Oldham’s Economy and Greater Manchester, in the context of the recent independent economic review of the Northern Powerhouse.

The implications could not be precisely understood for some time due to the protracted period of political and economic uncertainty resulting from the UK “leave” vote.  The report dealt principally with some of the known and predicted economic and business implications.  Alongside these implications were wider social cohesion implications and risk caused by the negative focus on the campaign on immigration issues.  These would continue to be monitored and managed in partnership with Greater Manchester Police and other local partners.

On 30^th June 2015, the Government had received the report of the Northern Powerhouse Independent Economic Review (NPIER) which had been commissioned by Transport for the North (TfN) on behalf of Leaders across the North.  The report found that:

·       The North’s economic performance gap was persistent and entrenched and averaged 25% below the rest of England (10-15% when London was excluded);

·       Productivity differences accounted for the majority of the performance gap; and

·       The poor productivity was explained mainly in terms of workforce skills – although issues related to technology, investment and connectivity also had a bearing.

The NPIER identified distinctive sector capabilities in the North, which was highly productive and could compete on national and international stages.  The sectors were outlined in the report and were closely aligned with the Council’s new Strategic Investment Framework (SIF) and Work and Skills Strategy.

The uncertainty which surrounded the future economic performance of the UK as a consequence of the EU referendum provided a more challenging macroeconomic context for delivery of the NPIER’s aspirations.  Greater Manchester was working rapidly to seek safeguards for the national and international competitiveness of the city region against the backdrop of the referendum result and to help achieve the NPIER aspirations in Oldham and across Greater Manchester.

Councillor Mushtaq spoke on the report.

Councillor Jabbar spoke on the report.

Councillor Roberts spoke on the report.

Councillor Harkness spoke on the report.

Councillor Hudson spoke on the report.

Councillor Bates spoke on the report.

Councillor Sykes spoke on the report.

Councillor Sykes MOVED that a letter be written to the Prime Minister to guarantee or make claim to monies promised prior to the EU Referendum Vote to come to Greater Manchester and Oldham.

Councillor Sykes also MOVED under Council Procedure Rule 8.4 of the Council’s Constitution that the Leader give consideration to creation of a Cabinet responsibility to an individual or a number of individuals within the Administration to consult with Group Leaders and report back to Councillors and full Council where appropriate on this issue.  Councillor Blyth SECONDED the MOTION.

Councillor Stretton, Leader of the Council, responded that she would be happy to write to the Prime Minister jointly signed with the Leader of the Main Opposition and also suggested that each of the Cabinet Members had some responsibility but would ask Councillor Jabbar, Deputy Leader and Cabinet Member for Finance and Human Resources to take lead responsibility as this area would have the most serious impact.

Councillor Sykes exercised his right of reply.

On being put to the vote, the MOTION was CARRIED UNANIMOUSLY. 

RESOLVED that:

1.       contents of the European Union Referendum – Impact on Oldham and Greater Manchester report be noted.

2.       a letter be sent to the Prime Minister jointly signed by the Leader of the Council and Leader of the Main Opposition on funding.

3.       Councillor Jabbar, Deputy Leader and Cabinet Member for Finance and Human Resources to take lead responsibility to consult with Group Leaders and report back to Council.