A TOWN hall report has revealed that Oldham chiefs expect the borough to struggle after Brexit – and hard-up families could pile even more pressure on council services.

An in-depth report examining the impact of Britain leaving the European Union on Oldham and Greater Manchester says that the risks are "considerable".

The document, which was presented at a meeting of Oldham’s full council, assesses the potential short and long term impacts on residents’ living standards and employment, and also on business and the economy.

If the economic shock of Brexit prompted the government to carry out a further round of public spending cuts, there would be "significant financial implications for the council", officers say.

“Regardless of the type of deal agreed with the EU, consumers are likely to be hit by an increase in prices, particularly for food and energy,” it states.

“The inability of households to adjust to any negative economic impact arising from Brexit may increase demand for council services, which may add to the financial pressures already being experienced by the council.”

It states that volatility in the financial market is a key issue for the borough going forward as it could negatively impact the authority’s investments.

Bruce Penhale, assistant director for ‘Communities and Early Intervention’ adds that the council are working closely with the police to monitor any ‘community tensions’ caused as a result of the EU referendum.

“While it appears that there is a level of fear and anxiety within some sections of the community – particularly Eastern European people – there has been no evidence of a significant upsurge in hate incidents in Oldham linked to the referendum or its outcome,” he said.

Bosses say that the decision to leave the EU has "heightened the risk to future growth and prosperity of Oldham", as well across Greater Manchester and many areas of the UK.

They believe that Greater Manchester faces "particular risk" to its economy as the EU accounted for almost 60 pc of goods exports from local firms in 2015.

“In previous recessions Oldham’s economy has been impacted hardest and recovery is more difficult and takes longer than other areas of the UK,” officers add.

“It is essential that there is recognition, understanding, support and investment from the government and Greater Manchester to mitigate the impacts of any adverse economic shocks to ensure economic and social resilience for the people of Oldham.”

This support could be achieved by lobbying Greater Manchester mayor Andy Burnham and the Local Government Association, the report states.

But town hall chiefs add it is issues of low skill levels, a decline in private sector investment and wage levels and "our own population’s inability to meet the skill demands of a modern labour market" that remain the main barriers to sustainable growth in Oldham.

The council will continue to monitor the impact of the Brexit process through the Oldham Partnership, and particularly through the economy and skills board.