Make UK/BDO Report: “Industry warns of damaging ‘double whammy’ hit to regions from ‘no-deal’ Brexit outcome”
In a new analysis of regional manufacturing performance published by Make UK and BDO LLP, Britain’s manufacturers have warned that some of the UK’s most economically deprived regions are at risk of a ‘double whammy’ hit to their economies in the event of a ‘no-deal’ Brexit occurring.
The annual Make UK/BDO Regional Manufacturing Outlook highlights manufacturers’ contribution to economic regions of the UK in terms of output, jobs and investment. It also highlights the exposure of those regions with a high dependence on exports to the EU that are already suffering losses, but are also likely to be most at risk from a ‘no-deal’ Brexit, barriers to trade and tariffs.
According to the analysis, Wales (almost two-thirds), the North East and Yorkshire & Humber (both 60%) have a very high exposure to trade with the EU. Combined, the critical contribution of manufacturing to the economy overall in Wales and the North East is way above the average (17.5% and 15.2% respectively). The risks of ‘no-deal’ are likely to be felt disproportionately by these areas in particular. The East Midlands is also not too dissimilar with manufacturing accounting for almost one fifth of its economy and the EU being its biggest market accounting for 50% of exports.
According to Make UK, given that Wales and the North East both contain some of the most economically disadvantaged areas of the UK, a hard Brexit is likely to prove especially damaging for these areas in particular.