THE impact of Brexit on East Lothian’s key economies has been laid out as the county’s chief finance officer warned that talk of an end to austerity was premature.

Jim Lamond, head of East Lothian Council resources, dismissed claims austerity was coming to an end as a report warned of uncertainty about the future of farming, food and drink, and tourism after the UK left the European Union (EU).

Audit Scotland identified the potential problems facing East Lothian as the key sectors of its economy came under risk. It warned similar impacts on Edinburgh’s higher education and financial sectors, which employ a  significant proportion of East Lothian residents, could also have a negative effect.

In its report on the council’s financial performance from 2017/18, Audit Scotland said: “The council has flagged up the economic uncertainty in relation to Brexit.

“Key sectors of East Lothian’s economy – farming, food and drink, and tourism – could be negatively impacted by Brexit through loss of EU subsidies, changes in trade agreements and negative changes to currency values.”

A council meeting was presented with the annual report which revealed that, while the council spending over the year had “remained in line with its overall budget”, there had been areas of concern.

There was an underspend of services created mainly on staff budgets  while health and social care services overspent by £890,000 due to increased demand for support for children and adult services.

There were also ongoing concerns about rent arrears created by people switching on to the new Universal Credit (UC) benefit system, with an estimated 82 per cent of council tenants on UC now in arrears.

Councillor Fiona O’Donnell asked Mr Lamond: “Does this report signal the end of austerity?”

He replied: “Quite definitely not.”