‘Triple whammy’ threat for vulnerable regions

REGIONS OF the UK that have struggled to recover from the financial crisis a decade ago face problems such as losing EU funding after Brexit, a new report warns.

Weak economic performance in areas such as Yorkshire, the North-East, Wales, Northern Ireland and the North-West leaves households particularly vulnerable to the potential impact of leaving the EU, said the Financial Inclusion Centre. The gap between the wages of these areas and London has widened in the past 10 years, said the report.

Author of the report, Mick McAteer, said: “If the Government’s own economic predictions are correct, Brexit will cause these gaps between the various countries and regions of the UK to widen still further.

“It is only in London and the South-East where we see the amount of public revenue generated being greater than public expenditure. This has potentially serious implications for the weaker UK regions.

“In the worst-case scenario, some of the most vulnerable regions could suffer a ‘triple whammy’ – a very significant loss of potential economic output, the loss of EU funding and third, unless fiscal transfers from stronger parts of the UK economy can be maintained at the same level to mitigate these impacts, the combined economic shock could be severe.”

Separately, a new study shows people on low incomes believe improvements to public services and living standards should be a priority after the UK leaves the European Union.

Research for the Joseph Rowntree Foundation (JRF) found that those on low pay also wanted more jobs to be created postBrexit.

The findings are a “clear challenge” to political parties to address the concerns of low income voters, who overwhelmingly backed Leave, said JRF.

Just over half of voters on low incomes thought Brexit would result in the UK having greater control over the economy.

Campbell Robb, chief executive of JRF, said: “Low income households could be a key battleground at the next election.”