Northumberland County Council finance chief predicts 'significant impacts' from Donald Trump election victory
by James Robinson · ChronicleLiveThe finance chief at a North East council has warned that Donald Trump's US election result could have huge repercussions for local authorities.
Pledges made by the incoming President have caused concern around the world - particularly with regards to the Russian invasion of Ukraine and threats around tariffs on goods imported to the US. Speaking at Wednesday's meeting of Northumberland County Council's audit committee, finance chief Jan Willis admitted President Trump's victory would likely have a "significant impact" on the council.
She identified the presidential election as one of two key events since the end of September that could alter local Government finance - the other being Labour's autumn Budget.
Speaking at the meeting, Ms Willis said: "Both have had a significant impact on the world economy and therefore the UK economy, and will impact on our treasury management strategy.
"The US election could have a significant impact in two ways - if, as announced, Trump intends to introduce significant trade tariffs, that would have a significant impact in terms of a slowdown in economic activity outside the US.
"He could also seek to do a deal to bring the Ukraine war to an early end. Ukraine might not be very happy about the terms, but that could help to ease some of the pressures we have been seeing around energy."
Coun Nick Oliver commented it was "very brave" to be attempting to guess what the president would do once in office. Ms Willis continued: "It is difficult to know how these things are going to play out. There are lots of different issues for us to think about."
On the UK economy, Ms Willis pointed out that interest rates had fallen from 5% to 4.75%, with some economists predicting they could fall to as low as 2.75% by this time next year. She described the falling interest rates as "very good news" for the council, but noted officials would have to "wait and see" in terms of growth.
Join our Northumberland WhatsApp community
Join our Northumberland WhatsApp community for all the latest news Northumberland news direct to your phone.
To join you need to have WhatsApp on your device. All you need to do is choose which community you want to join, click on the link and press 'join community'.
No one will be able to see who is signed up and no one can send messages except the ChronicleLive team.
We also treat our community members to special offers, promotions, and adverts from us and our partners.
If you don't like our community, you can check out any time you like. To leave our community click on the name at the top of your screen and choose 'exit group'.
If you’re curious, you can read our privacy notice.