CBI warns no deal Brexit could cost North West £20bn

The CBI has calculated that a no deal Brexit could cost the North West a 'devastating' £20bn in lost output by 2034.

Analysis of government figures shows that the region could be among the most exposed to potential economic fallout of leaving the EU without a deal.

CBI says the figure is more than double the annual amount of public spending on schools and education in the North West.

Manufacturing, and in particular the automotive sector, are likely to be severely impacted as it is particularly exposed to the risk of higher tariffs and trade costs.

With 49 per cent of the North West’s goods exports going to the EU, any increased trade friction, added costs or delays would hit the region particularly hard.

Damian Waters, regional director for CBI North 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 North 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 North 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 North West for decades to come. It’s time to put our region’s prosperity before party politics and dogma.” The government's findings can be found here, and a more in-depth look at CBI's analysis can be found here.