How Brexit will hit different UK regions and industries

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Raquel Ortega-Argilés, University of Birmingham and Philip McCann, University of Sheffield

The very areas of the UK which voted Leave in June 2016 are likely to be the ones hardest hit by Brexit. Our research on the likely economic consequences of leaving the European Union on different regions and industries is consistent with the recently leaked government analysis which suggests that London will be one of the areas least hit in the event of a no-deal Brexit. The north-east of England, meanwhile, will be one of the worst affected.

An important element here is that these regions (and the sectors of the economy based there) have little representation in the Brexit negotiations and rarely figure in media discussions. When it comes to the potential impact of Brexit, the most prominent stories are those with underlying political or business interests. For example, the case for special treatment of particular industries after Brexit tends to revolve around financial services, automobile and aerospace firms.

On the one hand this is because these industries are widely understood as critical for the UK economy. But it’s worth noting that these industries also have strong lobbying power and access to government policymakers. In contrast, many other parts of the UK economy do not. Our analysis suggests that, in reality, it is many of the less high-profile sectors – and the regions where they are located – that could be the most exposed to Brexit.