No-deal Brexit ‘will cost East Midlands £12bn’

A ‘no deal’ scenario when leaving the EU on October 31 could cost the East Midlands economy £12bn, a leading business organisation has warned.

The CBI says it has backed up government efforts to help prepare for a no deal exit by publishing practical steps the UK, EU and businesses can take to reduce the worst effects.

It has put forward 200 recommendations to help with no deal preparations for UK, EU and companies.

The study 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.

Manufacturing activity is particularly important to the East Midlands, says the CBI, adding that 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.

CBI East Midland regional director Richard Blackmore said: “Neither the East Midlands, the UK nor the EU are prepared for a no deal Brexit. In the UK, outdated technical notices need urgent review. An ambitious communications campaign to reach every firm in the region must be launched. Government plans and IT systems must be tested.

“The invisible effect of severing services trade overnight would have a damaging impact in businesses all across the East Midlands.”