North ‘hit hardest’ by Brexit
THINK TANK’S BLEAK OUTLOOK FOR REGION
THE North East will among the hardest hit if the European Union refuses to agree a major trade deal with the UK after Prime Minister Theresa May triggers Article 50 tomorrow.
A leading think tank said the North East and London had the most to lose among the regions of England if “hard Brexit” takes place.
The warning came as Mrs May prepares to begin the process of leaving the EU.
She is expected to continue her tour of the nations of the UK with a visit to an English region today, having spoken in Wales last week and Scotland yesterday.
Meanwhile, Labour has warned it will “not support” a deal with the EU unless it meets a series of conditions, including providing the UK with the “exact same benefits” as the country currently enjoys as members of the Single Market and Customs Union.
Think tank Demos found the North East would be particularly affected if the UK left Europe without a substantial trade deal, as the region is a major exporter to the EU.
More than 60% of North East exports go to EU countries, Demos said. And the region also benefits more than many other parts of the country from EU funds.
The Demos report said: “The EU distributes regional structural funds to reduce inequality, and so some less prosperous areas of the UK – Wales, Northern Ireland, Scotland, South West and North East – stand to lose.”
London could suffer from Brexit for a different reason, as it is particularly reliant on skilled labour from EU countries, Demos said.
Speaking in East Kilbride, Scotland, Mrs May confirmed her ambition of avoiding a “hard Brexit” and instead forging new agreements with the EU while also building relationships with the rest of the world.
She said: “We are going to take this opportunity to forge a more global Britain. The closest friend and ally with Europe, but also a country that looks beyond Europe to build relationships with old friends and new allies alike.”
The Prime Minister also insisted the deal struck with the EU must work for all nations of the UK.
It follows the announcement by the SNP, which controls the Scottish government, that it still wants a new referendum on Scottish independence.
Mrs May said: “When this great union of nations – England, Scotland, Wales and Northern Ireland – sets its mind on something and works together with determination, we are an unstoppable force.
“That is why the plan for Britain I have set out – a plan to get the right deal for Britain abroad as well as a better deal for ordinary, working people at home – has as its heart one over-arching goal: to build a more united nation.”
Shadow Brexit Minister Keir Starmer said Labour would refuse to support Mrs May’s Brexit plans when they are put to a Commons vote, though it was unclear whether Labour is threatening to vote against the proposals or simply to abstain.
Mrs May has promised there will be a vote on the deal with the EU before it is signed off.
He said: “All of us want the best for Britain. But the stakes are high and the Prime Minister’s approach so far does not bode well.
“Failure to meet the tests I have set out today will of course affect how Labour votes in the House of Commons. The Prime Minister should be under no illusion that Labour will not support a deal that fails to reflect core British values and the six tests I have set out today.”