West Midlands to be among hardest-hit by no-deal Brexit

Private Government forecasts show that a no-deal Brexit could reduce economic growth in the West Midlands by 13%.

The region, which voted in favour of leaving the European Union in the 2016 referendum, is forecast to be worst hit along with the North East.

The same report estimates that carmakers face a 13% rise in manufacturing costs outside the EU.

The forecast forms part of a Government impact assessment that was first shown to Cabinet ministers and is now available for MPs to access in a reading room at Westminster.

The analysis also looks at regional rates of growth if there is a free trade deal and if the UK stays in the single market but is outside the EU.

In those circumstances, it is estimated that the impact would be an 8% and 2.5% hit to the West Midlands’ growth respectively.

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