Report shows Brexit could cut Scottish GDP by 9%

Randall Padilla
February 9, 2018

Another Labour MP and Remain supporter, Chuka Umunna, said: "The Government's own analysis of the economic hit to GDP from a "no deal" Brexit would be 16% to North East England and 12% to Northern Ireland - and still Tory Brextremists agitate for this!"

It says staying in the Single Market would reduce economic growth by three per cent over the next 15 years, a free trade arrangement by 11 per cent and "no deal" by 16 per cent.

"The Tories must now explain why they accused the Scottish Government of scaremongering when their own government was covering up similar findings".

Northern Ireland would suffer an 8 per cent dip in growth after a free trade deal, a 12 per cent dip in the event of "no deal", and a 2.5 per cent fall in the single market.

Mrs May chaired the Brexit sub-committee on Wednesday and will do so again on Thursday to thrash out what kind of trade relationship the United Kingdom will seek in negotiations.

London weathers the storm best, with the local economy falling two per cent if we strike a free trade deal and 3.5 per cent with no deal.

Tom Brake, Liberal Democrat Brexit Spokesperson, said: "This is a damning outlook for the North East".

"The Conservatives are putting the public in the firing line because they are hell bent on Brexit. Now the facts are known, the people are entitled to a vote on the deal and a chance to exit from Brexit".

Meanwhile, Sky News also obtained official estimates of the potential impact of non-tariff barriers - such as extra red tape, customs checks and rules of origin regulations - on various economic sectors.

Prime Minister Theresa May's spokesman said he had not seen the specific details reported by Sky, and pointed to May's response to the initial leak of the papers. "We will continue working closely with the commission to agree a legally binding text for the commitments made in December", she said. "This staggering British Government leak confirms what many across society have been saying since, and before, the Brexit vote - dragging the north from the European Union has the potential to devastate our local economy", he said.

A Government spokesman said of the regional impact studies: "This document does not represent Government policy and does not consider the outcome we are seeking in the negotiations".

"As ministers clearly set out in the House of Commons, this is provisional internal analysis, part of a broad ongoing programme of analysis, and further work is in progress".

'We are seeking an unprecedented, comprehensive and ambitious economic partnership - one that works for all parts of the UK. "We are not expecting a no deal scenario".

Other reports by AllAboutTopnews

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