A £1 million contingency fund to deal with the potential impacts of Brexit is to be set up by Caerphilly County Borough Council.
The local economy and the council’s supply chain could be disrupted if the UK leaves the European Union without a deal, according to a council report.
Concerns have been raised about a possible lack of inward investment in the longer term, with a rise in prices for goods and services potentially affecting smaller businesses.
But with “so much outside our control”, the council says no-deal preparations have proven difficult with uncertainty surrounding the Withdrawal Agreement tabled by Prime Minister Theresa May.
“It is impossible to mitigate many of the risks without greater clarity on the actions to be taken by the UK and Welsh Governments,” the report says.
The proposed Brexit fund, which could be approved by cabinet on January 16, would be drawn from £20.8 million in unallocated reserves.
Local authorities in Wales have been issued with a ‘Brexit preparedness toolkit’ by the Welsh Local Government Association (WLGA).
The document says: “While the outcome of Brexit negotiations remains uncertain, it is essential for councils to set a path to ensure the continued delivery of vital services and the best possible outcomes for their local communities and economies.”
Wales currently takes more funding from the EU than its taxpayers put in, receiving around £680 million each year.
Organisations will be unable to access EU funding after any agreed transition period but if the UK leaves without a deal, the Treasury has ensured to fund projects approved before the end of 2020.
EU funding would be replaced by the UK Government’s Shared Prosperity Fund from January 2021.
MPs are set to vote on the Prime Minister’s withdrawal deal on Tuesday, January 15. It is widely expected that MPs will vote against the deal.