Agenda item

The Leader presented the report to Cabinet.  This was the Cabinet Report update of the new UK-EU trade relationship since 31 December 2020. 

Trade Negotiations Update

·       Since the last Cabinet Report (8 January 2021) the United Kingdom officially left the European Union (EU) and the Single Market. 

·       The UK and EU now had a trade agreement that enabled tariff free trade between both areas.  However, UK and EU businesses had to comply with new custom rules that required importers and exporters to complete additional documentation.

o     Nationally, many businesses had voiced the difficulties faced in meeting these new requirements and in some instances goods failing to be delivered either in the UK or EU. 

·       Now that we had entered into this new relationship, it was important that Wales, Newport and the region positioned itself to ensure that existing businesses could sustainably thrive into the future; new, home grown entrepreneurs were supported and that we could promote new global investment into the area.

·       The UK Government promised that regions across the UK including Newport and the South East Wales would receive investment through new frameworks such as the Shared Prosperity Fund and the proposed Subsidy Regime. 

·       As with many cities and towns in Wales, the gap between the rich and the poor was increasing, which had been made all too prominent during this pandemic. 

o   With any additional funding that Wales received through the new frameworks, we must ensure that Newport was able to use this investment to support communities not just to ‘level up’ but to also ensure that communities were able to become more resilient and thrive in the long term.           

·       New immigration rules also came into place from 1 January which ended free movement between the UK and Europe. 

·       Newport had and always would be an inclusive city where people from all nations are welcomed to live, work and be part of our communities that contributed towards the sustainable growth of the city.

·       For EU citizens, their families and friends already living in Newport it was important to apply to the EU Settled Status before the 30 June deadline. 

o     The Council’s and Welsh Government websites have all the necessary information to help people apply.

·       It was also good to see how the Council and its partners over the last four years were working with EU communities to support the most vulnerable and ensure people were able to apply. 

·       As the report highlighted, many EU citizens were facing barriers and uncertainty over their rights, and issues of hostility.  As representatives of Newport’s wards it was important that we supported our communities, Council officers and partners raising any issues or concerns.

·       The report also highlighted the UK enabling Hong Kong citizens to apply for Visas to live, work and study in the UK.  As Newport is a multi-cultural city it was expected that we would welcome Hong Kong citizens into the City.

o    The Council alongside its Housing, Educational and multi-agency partners were already considering what support, resources and requirements would be needed to help people settle into our communities. 

Progress Update as outlined in the Report

·       In the first two months of the new arrangement, Newport Council’s services did report any initial issues and/or concerns in the supply of goods and services.

·       However, prices of some goods and services increased and the Council’s Procurement / Finance teams would monitor the impact on budgets over the course of this and next year’s budgets.

·       Newport Council identified only one scheme (Inspire to Achieve) that directly received its funding from the EU and was due to naturally close in December 2023.  After this date, the Council would support the Welsh Government with any new initiatives that would help people access the necessary training, support and work which the Inspire to Achieve programme already offered.    

·       The Council’s Communications team continued to promote the EU Settled Status scheme to residents on social media (Facebook and Twitter) and the Council’s own website. 

·       The Council’s Regulatory Services were supporting businesses in Newport with necessary support to comply with the new requirements and ensured all necessary EU Health Certificate checks were completed.  

·       In addition to the Community Cohesion work that was highlighted earlier, the team continued to offer support to the vulnerable and communities where they had no resource to public funds.  The Council would also be offering small grants to food banks / organisations that were impacted by Covid and Brexit.  

·       The table in Appendix 1 of the report provided full details across the areas covered by the Task and Finish Group.

Resolved:

Cabinet considered the contents of the report and noted the Council’s Brexit preparations.