Frontline health and social care services could be at risk after Brexit, local authorities fear.

In a London Council’s report into the possible impact of Brexit across London’s local authorities, councils raised concerns about the impact on their services, economic growth and housing provision.

The report said new homes could be “jeopardised” by a severe shortage of skills in the construction sector, which could mean local authorities miss their housing targets.

Authorities have also predicted their frontline health and social care services will be among the worst affected areas and that a shortage of construction workers could lead to fewer houses being built.

The report said: “EU citizens underpin key services in London including social care and education.

“As a key employer in the capital and as a provider of statutory services, boroughs are concerned that any changes to EU nationals’ right to work could exacerbate the severe shortages of frontline social care workers and increase the care dependency ratio.”

The report adds: “The fall in the value of the pound is making London less attractive to foreign workers, thereby reducing the labour that is available to local businesses who are keen to grow.”

Europeans living in London also contributed to the report and expressed their worries of being ostracised and experiencing hostility as a result of the Brexit process.

“The persistent uncertainty and the othering nature of some parts of the migration debate could isolate communities and put some of our most vulnerable European residents at risk,” it says.

Some councils reported a marked increase in hate crime following the referendum in 2016, particularly against Polish and other Eastern European nationals.

Following the referendum, Home Office figures showed there was a 50 per cent increase in the number of applicants from EU states seeking permanent residency in the UK.