While it was once thought to be incredibly unlikely, a no deal Brexit scenario is now certainly on the table. Businesses await with baited breath for the impact that leaving the EU will bring, and many EU nationals are leaving Britain entirely for fear of being unwelcome. Of course, there’s also the question of how Brexit will impact those remaining on British soil too.
Still, a no deal Brexit will irrefutably impact the north east of England most of all. There are many factors that lead to this consideration, and below each of them are explored.
A Loss of Purpose?
The north east of England is a prime destination for trade and is where much of the exchanges between the UK and EU take root. If there’s a no deal Brexit, the north east will face large scale disruptions, as well as become a far less attractive place for growth and investment. They’ll lose that key draw of being an EU supplier and receiver. Put simply, the north east is where the loss of the EU can be felt most sharply.
Remember, ties between the UK and EU were never loose and quickly formed. Entire companies are based in the north east that were built for the sole purpose of working with the EU. When Brexit is enacted and those ties are severed, many of these firms will likely fade away into nothing, costing many people’s careers and livelihoods in the process. Certainly, firms like Liberis help businesses stay funded and open, but when their entire purpose has been uprooted then all of these businesses have no reason to continue.
Of course, because so many north east businesses are powered and purposed by the EU and trade with them, the higher tariffs that will be incurred in the event of a no deal could very well run them out of business too. How can SME’s and up and coming talents hope to survive and ride out this rocky terrain? They simply don’t have the resources to keep up with the shift.
The north east of England is also a manufacturing haven; will these manufacturers have anyone to send their goods too? If they do, how do they afford all the fees and costs that will be incurred with that trade. In the end, many north east businesses will be boxed into a corner that only a large amount of money will get them out of; in the case of SME’s though, that money will not be found.
It’s Not London
As uncomfortable fact as it may be to admit, the north east of England is often neglected by parliament. In fact, the north in general is often placed on the backburner, as focus and funding has long since gone to the preservation and improvement of London and other southern territories. After all, the debate between north and south has been raging for decades, and it usually lands on a consensus of the north being poorer than the south.
Brexit may impact the north east of England most of all because, unfortunately, they likely stand to get the least amount of help when everything is said and done. All of Britain will be impacted profoundly by Brexit, and some areas will wrongly be prioritised over others. It’s certainly unjust and unfair, but it’s in times of economic crisis where these geographical divisions become the most obvious.