North East region would suffer most out of No-deal Brexit

As the potential of a No deal Brexit continues the outcome of this potential scenario is being calculated.

The CBI (Confederation of Business Industry) have illustrated the long-term economic decline its northern border East would disproportionally suffer within No Deal situation, when compared to remaining UK.

The study has calculated that the annual loss of output in this region would be worth lb7billion by 2034, in an part of the country that is already among the poorest in the Great Britain.

The gross useful (GVA) – the measure of economic value of products or services – might be reduced by 10.5% within the north-east by 2034.

This shortfall would damage people's jobs, livelihoods and living standards. This figure is the same as twice the annual public spending on schools and education within the North East.

Josh Hardie, the deputy director general from the CBI, said: “The projected impact on the UK economy could be devastating and, while business is going to do all it may to reduce a few 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 evident: if the new approach to getting a Brexit deal remains a game title of who blinks first, its northern border East economy will pay the cost.

“The deadlock are only broken by a genuine attempt by all MPs to locate consensus and compromise, not stay with rusting red lines and political conditions. Such as the remaining UK, the North East is not – and can't be – ready without deal.”