Birmingham faces around a dozen major problems in the face of Brexit, councillors have been told - but one member has bet £20 that it will all be okay.

Lloyd Broad, the city council's head of European and International Affairs, said the authority was now priority planning for a 'no deal' Brexit.

He told the Economy and Skills committee that included the 'cliff-edge' scenario of a no deal Brexit without an agreement to revert to World Trade Organisation rules.

But Brexiteer Cllr Simon Morrall (Cons, Frankley Great Park) said he was 'putting his money where his mouth is' and made a wager with the committee that the country's economy would not be significantly damaged by leaving the European Union.

An eagerly awaited Brexit impact assessment on Birmingham and the West Midlands is due to be published in a matter of weeks.

Cllr Simon Morrall placing a £20 wager that Britain's economy is not going to be significantly damaged by Brexit.
Cllr Simon Morrall placing a £20 wager that Britain's economy is not going to be significantly damaged by Brexit.

What are Birmingham's 11 Brexit problems?

Mr Broad said the 100-page document outlined 11 'key areas of concern' for the region which he covered in a presentation:

  • Trade - The impact of customs arrangements, tariffs, regulation, freight and borders, on the economy particularly on advanced manufacturing.
  • Infrastructure and investment - Including investment into transport, broadband, housing and business and the 'need to sustain international competitiveness'. Some investment decisions have already been frozen due to uncertainty.
  • Key employment sectors - Sectors which are 'particularly vulnerable' such as the automotive trade and the wider supply chain. Reference was made to the situation at Jaguar Land Rover which has seen falling demand due to Brexit, moving staff at Castle Bromwich to a three-day week and shifting production of the Discovery from Solihull to Slovakia. There is also concern around health and social care workers with one in ten nurses being EU nationals.
  • Productivity and skills - The recruitment and retention of skills, especially maintaining technically proficient workers. It was said Birmingham needs to do more for the city's residents to be able to fill the skills gap.
  • Just in Time production - Food and medicine may need to be stockpiled while there are implications for energy.
  • Economy - The region's economy could shrink by up to 13 per cent potentially increasing demand on council services. There could also be consequences from 'volatile interest rates and markets' and their impacts on servicing debts.
  • Business adaptability - Whether small to medium enterprises (SMEs) - which make up 95 per cent of the region - are prepared for the new trading arrangements. It was said that 80 per cent of those had done no work to get ready for Brexit.
  • EU funding - Birmingham has benefited from more than £1 billion in EU funding. The UK Shared Prosperity Fund will be 'critical' to filling the gap. The council is currently in receipt of £100m from the union.
  • Security - Complying with international treaty obligations and trading requirements. Also the potential for public demonstrations and disorder.
  • Data sharing - Collaboration between EU and regional institutions. There could be implications for counter-terrorism, medicines and healthcare.
  • Public service resilience - Implications for key services such as workforce, trading standards, regulation, procurement of services and state aid.

What do city councillors have to say about it?

The committee members each posed questions around the presentation.

Former council leader Cllr John Clancy (Lab, Quinton) said: "Much of the Brexit planning has been based on a 'deal Brexit'.

"My concern is we are going to have to run very, very fast to prepare this city for the challenges and opportunities of a no deal."

Cllr Fred Grindrod (Lab, Bournvile and Cotteridge) expressed disappointment that an equality assessment had not been carried out arguing he was particular concerned for women and the families of EU nationals.

Cllr Julien Pritchard (Green, Druids Heath and Monyhull) stated that the presentation seemed to focus on the risks and threats of Brexit and questioned what the opportunities were.

While Cllr Philip Davis (Lab, Billesley) called for a sector by sector study saying the Jewellery Quarter in particular could be significantly impacted.

Cllr Morrall was the last to have his say and declared he wanted to 'paint a positive picture'.

He proceeded to try and debunk many of the points made in the presentation arguing British economic growth in the last quarter was higher than the Eurozone, that Britain was now the second best country for foreign investment and that the reason SMEs had not prepared for Brexit is because 'they don't need to be prepared'.

The web developer said one of the reasons he voted Leave was because he had to fill out a 'cookie policy' for all of his clients because of 'some guy in Brussels who doesn't understand how websites work'.

'Brexit is not going to have a significant impact on this country' - bet

But committee chairman Cllr Tahir Ali (Lab, Nechells) brought him to a halt by turning off his microphone telling him he had '90 seconds to wind up' at which point Cllr Morrall waved a £20 note and placed it on the table.

"I will bet £20 that on the macro-economic figure Brexit is not going to have a significant impact on this country and it will be much better off," he added.

Mr Broad admitted the Leave result in the 2016 referendum had been a 'shock' saying it was clear it was something the region 'wasn't planning for'.

In response to some of the points, he said it was his 'immediate priority' to prepare for a no deal Brexit, focusing on the risks and exposure in the short to medium term, but added he was not 'losing sight' of opportunities to negotiate with the Government particularly around 'accelerated devolution'.

Mr Broad also pointed out that Birmingham would continue to be an executive member of EUROCITIES although admitted it was not an 'all-singing all-dancing solution'.