Brexit to slow g rowth in all parts of Britain

Leaked papers show Leave areas worst hit

ALL parts of the UK face slower economic growth as a result of Brexit, a leaked report reveals.

But the impact will be worst in Leave-voting areas such as the North East, which will take a 16% hit if we quit the EU without a deal.

Meanwhile London, which overwhelmingly backed Remain, will suffer the lowest drop.

Whitehall mapped out the 15-year impact of three Brexit scenarios: staying in the single market, doing an EU trade deal or going without one.

UK growth would be 2%, 5% and 8% lower in each case respectively compared with current forecasts.

The analysis shown to MPs was leaked as Theresa May’s Brexit war cabinet, including Brexit Secretary David Davis, tried to set out a position on the next phase of negotiations.

A second leak, from a draft section of the withdrawal deal, suggested the EU wants to be able to punish the UK by restricting single market access if there is a dispute in the transition phase after Brexit in March 2019.

Mrs May insists the UK will quit the single market and customs union. But Pro-EU Tory MP Stephen Hammond will propose we join the European Free Trade Association, which allows European Economic Area membership and access to the single market.

Shops could face a 20% rise in costs and car makers 13% due to red tape and other non-tariff trade barriers after Brexit, according to Sky News.