Brexit has damaged Britain’s competitiveness, reducing productivity and workers’ real wages in the years ahead, according to a new study – and the North East is expected to take the hardest hit.
The Resolution Foundation said leaving the EU has reduced how open and competitive Britain’s economy is. The reliance of North East firm’s on exports to the EU means the region’s economy will suffer the most, it added.
The Foundation's report, in collaboration with the London School of Economics, said the immediate impact of the referendum result has been clear, with a “depreciation-driven inflation spike” increasing the cost of living for households and seeing business investment falling. The UK has not seen the large relative decline in its exports to the EU many predicted, although imports from the EU have fallen more swiftly than those from the rest of the world, the study suggested.
