North East economy to be hardest hit by Brexit, government papers reveal

07 February 2018

A ‘no deal’ Brexit will mean a 16% cut to GDP in the North East of England, making it the hardest hit part of the United Kingdom under this scenario.

The figures come from a leaked Brexit analysis paper put together by the government, which also states that Northern Ireland GDP will fall by 12%.

Regional economic development experts have estimated that the predicted percentage cut to the GDP would translate into the loss of more than 200,000 jobs - 1 in 6 of the current total.

Paul Brannen, Labour MEP for the North East of England, commented:

“This is the type of news we always feared Brexit would bring.  As the poorest English region, the North East was inevitably going to be more vulnerable to the economic upheaval of leaving the EU.  To see this figure in black and white however is a real shock. 

“A 16% reduction in the GDP of the North East translates into thousands of job losses.  This is frankly a nightmare scenario for our region and for the government to be aware of this and still be willing to consider a no deal Brexit is absolute madness.  At the very least the UK needs to stay in the Single Market and the Customs Union.” 

Jude Kirton-Darling, Labour MEP for the North East of England, added:

“As disquieting as this may be, it is unfortunately only the beginning of a string of awful news to come out of the leaked impact assessment papers, and the direct result of the Tories being incapable of negotiating a Brexit deal that won’t drain all money and economic prospects out of the North East.

“Our region is not prepared to take this hit, especially in the context of ceasing to be the beneficiary of vital EU funding that has helped North East economy for many years. My constituents did not vote for a future outside of the EU that will see them unbelievably worse off.”

Original story: New Brexit leak of Government analysis reveals steep costs for UK industries

The North East Chamber of Commerce weighs in: Can the Government deliver Brexit and win the biggest prize in Britain today?

Do you think the North East needs its own voice in the EU exit negotiations?

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