‘No-deal’ Brexit could cost East Midlands £12bn a year

A ‘no deal’ Brexit could cost the East Midlands £12bn, according to new figures.

The study by the CBI reveals how the East Midlands could be “significantly exposed” to the economic fallout from leaving the EU without a deal with an estimated annual loss of output worth £12bn by 2034.

The CBI says the shortfall would hit people’s jobs, livelihoods and living standards. This organisations says the figure is more than the annual public spending on health, including all hospitals, GP surgeries and emergency health services, in the East Midlands.

Manufacturing activity is and the agri-food sector, which employs thousands, is likely to be “severely impacted” as it is particularly exposed to the risk of higher tariffs and trade costs, says the CBI.

With more than half of the East Midlands’ goods exports going to the EU, any increased trade friction, added costs or delays would hit the region particularly hard.

David Bondi, managing director of East Midlands employer Freshcut Foods, said: “Freshcut Foods is a £30m turnover fresh produce business that employs 280 people and supplies many of our favourite retailers and sandwich shops.

“Most of our raw materials are imported from the EU and have very short shelf lives. At no part of the supply chain – from grower to retailer – can more than a day or two’s stock be held.

“In a ‘no deal’ scenario, a delay of as little as 12 hours – coupled with lorry tailbacks at crucial ports – would adversely affect our ability to maintain full continuity of supply.”

Richard Blackmore, regional director for CBI East Midlands, 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 East Midlands economy will pay the price.”