As the possibility of a No deal Brexit continues the impact of this potential scenario is being calculated.
The CBI (Confederation of Business Industry) have illustrated the long-term economic decline the North East would disproportionally suffer under a No Deal situation, compared to the rest of the UK.
The study has calculated that the annual loss of output in this region would be worth £7billion by 2034, in an area of the country that is already one of the poorest in the Great Britain.
The gross value added (GVA) – the measure of economic value of goods and services – could be reduced by 10.5% in the north-east by 2034.
This shortfall would damage people’s jobs, livelihoods and living standards. This figure is equivalent to twice the annual public spending on schools and education in the North East.
Josh Hardie, the deputy director general of the CBI, said: “The projected impact on the UK economy would be devastating and, while business will do all it can to reduce some of the worst aspects, a no-deal scenario is unmanageable.”
Sarah Glendinning, regional director for CBI North East, said: “CBI members across the region are clear: if the new approach to finding a Brexit deal continues to be a game of who blinks first, the North East economy will pay the price.
“The deadlock will only be broken by a genuine attempt by all MPs to find consensus and compromise, not stick to rusting red lines and political conditions. Like the rest of the UK, the North East is not – and cannot be – ready for no deal.”
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