COUNCILLORS are set to discuss the impact of a no-deal Brexit on York.

A report prepared for City of York Council Executive, which meets on Thursday, says the local authority has put a set of contingency plans in place in case there is “significant disruption” to services like water, energy and fuel supplies following Britain’s exit from the EU.

But it adds that York is less likely to be hit by a reduction in European workers as the city has a low proportion of EU migrants - at 2.7 per cent in 2011 compared to the national figure of 4.1 per cent.

However, officers warn: “For all residents and business, there is a risk that there could be a short term increase in the cost of goods and materials.” They say that Brexit could have a “significant financial impact” on the council and may face “reduced public spending in the short term.”

The report adds: “York has a buoyant economy and is, in many ways, better placed to weather any potential negative impacts than many other cities. Whilst there is some possible impact across a wide range of areas, a recurring theme is the potential for increased cost within supply chains.”

Cllr Andrew Waller, Liberal Democrat deputy leader of the council, said: “With the continuing uncertainty and confusion as to the future of Brexit, it is absolutely crucial that we are able to plan and prepare in order to minimise disruption and retain a successful York economy. A wide range of discussions are ongoing with partners to determine what impacts could be felt by the city and if needed, what action we can take as a council to ensure day-to-day business continues.

“I am pleased that the Liberal Democrats have been able to bring this report to the council’s Executive and highlight what preparations we are making as local authority, should the Government fail to secure a deal.”

But Labour group leader Cllr Janet Looker criticised the council for leaving the report late and said its content is “worrying”. She said: “This report concentrates on the possible impact of a no-deal Brexit, as opposed to the impact of a planned and agreed Brexit from the EU.

“This administration has left it late to bring this report forward, and once it is published, it doesn’t really tell us very much other than that there is a great deal of uncertainty as to what the impact will be.

“However, the possibility of price rises and supply problems, whether short or long term, will be unwelcome regardless of a person’s view on Brexit.

“But the prediction of cutbacks to public services should the Chancellor’s prediction come to pass is every bit as worrying given how hard York has already been hit by Government austerity. Residents would certainly feel the effects of further budget cuts.”