BRITAIN’S looming exit from the European Union is causing uncertainty in East Renfrewshire, a new report has revealed.

Millions of pounds are currently ploughed into the local authority through EU schemes – and it is not clear whether this cash will be replaced.

Lorraine McMillan, East Renfrewshire Council’s chief executive, said: “EU funding provides direct support for many areas. There is little clarity about what will happen to funding streams in the longer term.

“The financial risks to local authorities are considered to be significant due to the nature of some EU funding streams. This is because local authorities match fund 50 per cent contributions against that funding.”

Currently, the council receives funding from the European Social Fund, the European Regional Development Fund and the LEADER programme.

From December 2015 to December 2019, this includes almost £1.5million from the social fund and £160,000 from the regional development fund.

It also involves a shared £1.1m with Inverclyde and Renfrewshire Council through the LEADER fund for rural developments.

From January 2019 to December 2022, the council is expecting almost £1.6m from the social fund and £160,000 from the development fund.

Ms McMillan said: “East Renfrewshire will continue with projects associated with this grant funding until expiry of the respective scheme. However, following Brexit, we will be unable to apply for any new EU funding.

“It is not known at this time whether the UK Government plan to provide this kind of grant funding in the future.”

Ms McMillan revealed the council had factored potential implications into long-term financial planning.

Her comments came in a report to the council’s audit and scrutiny committee, responding to issues raised by Audit Scotland’s report on withdrawing from the EU.

The council has identified 52 employees who are non-UK EU nationals and will need to apply to the EU Settlement Scheme to continue to live in the UK.

Ms McMillan said: “The council will signpost employees to the Home Office application process. There is some concern around volunteers. The position is less clear, as they do not derive income from their charity work or any other funds. They may qualify economically as self-sufficient but will have to prove access to funds if they are to remain in the UK.”

If no trade arrangements are agreed between the EU and UK Government before the end of next month, goods entering the UK will be subject to additional customs checks and trade tariffs.

Ms McMillan added: “This could, in effect, lead to an increase in food prices and affect budgets, for example, in schools.”

She said the council and partners continue to plan for the possibility of no Brexit agreement, considering “all possible scenarios to mitigate risks to the council and its services.”