Yahoo Finance Brexit to hit North of England twice as hard as London, says thinktank
The North will feel the real pain on Brexit far worse than London and the South, a thinktank has warned.
Brexit will have nearly twice the impact on the economy of northern England than the capital, says IPPR North.
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About 10.2% of the north’s gross domestic product (GDP), which measures the value of output of goods and services, is dependent on the EU, compared with 7.2% for inner London.
IPPR North says millennials, aged 22 to 37, and ‘Generation Z’, aged 21 and younger, will form the overwhelming majority of the workforce by 2030, but will “inherit a North rich in assets but poor in opportunity”.
In its annual assessment of the regional economy, State of the North 2017, the group says: “They will have to tackle unprecedented environmental, social and economic disruption, all the while caring for an ageing population who are set to live longer, but in poorer health and at high cost.”
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According to the report, Cumbria will be the hardest affected, suffering a 13.2% hit to GDP, followed by northern Lincolnshire at 12.8%.
The report suggests many northern regions are 50%-60% more dependent on EU markets for their prosperity than London.
More than 40% of all northern jobs are in occupations at high risk of being taken by robots or other types of automation.
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IPPR North calls on the government to devolve further powers out of London to enable northern millennials to “take charge”.
Referring to the surge in support among young voters for Jeremy Corbyn and Labour, Luke Raikes, senior research fellow at IPPR North, said: “They already clipped Theresa May’s wings in this year’s general election and will have no qualms in condemning the government’s watered down plans for the north of the country.”
