The ‘devastating’ long-term economic impact of a ‘no deal’ Brexit on the South West region has today (Tuesday) been laid bare in fresh analysis of government figures by the Confederation of British Industry (CBI).
A new study reveals how the South West could be among the regions most exposed to the economic fallout from leaving the EU without a deal with an estimated annual loss of output worth £13 billion by 2034.
Manufacturing activity is particularly important to the South West, and the aerospace and maritime sectors, which employs thousands, are likely to be severely impacted as it is particularly exposed to the risk of higher tariffs and trade costs.
With 45% of the South West’s goods exports going to the EU, any increased trade friction, added costs or delays would hit the region particularly hard.
Deborah Fraser, Regional Director for CBI South West, said: “CBI members across the region are clear: if the new approach to finding a Brexit deal continues to be a game of who blinks first, the South West economy will pay the price.”
“The deadlock will only be broken by a genuine attempt by all MPs to find consensus and compromise, not stick to rusting red lines and political conditions. Like the rest of the UK, the South West is not – and cannot be – ready for no deal.”
“The projected impact on our region’s economy would be devastating and while business will do all it can to reduce some of the worst aspects, a no deal scenario is unmanageable.”
“The message from the CBI to our politicians is clear – we must see compromise or the whole country faces the unforgivable prospect of a disorderly Brexit which will affect jobs and livelihoods in the South West for decades to come. It’s time to put our region’s prosperity before party politics and dogma.”