Brexit Fallout: Economic Disparities Deepen Across UK Regions
A new report reveals post-BREXIT economic disparities in the UK. The findings paint a complex picture of winners and losers, with London weathering the storm better than its regional counterparts.
The report highlights that while the entire UK faces economic challenges post-Brexit, the regions that voted for Brexit, particularly the red wall areas that shifted to the Tories, are grappling with the most severe consequences. The pain is less pronounced in the leafy suburbs of London, which predominantly support the Remain camp.
Contrary to some expectations, London will experience a milder impact compared to other parts of the country. The report suggests that the UK's overall growth will be 0.4% slower annually due to Brexit, with London facing a slightly lesser decline of 0.3%. By 2035, it is projected that the UK will have 3 million fewer jobs than if it had remained in the EU, but only 500,000 of those lost jobs will be in London.
The report emphasizes that the regions outside London will bear the brunt of slashed investments, projecting a 32% lower investment by 2035 compared to a scenario where the UK stayed in the EU. These regions are more dependent on trade in goods, which continues to be adversely affected, and they were also major beneficiaries of EU regional development funds.
Despite the report's somewhat pessimistic prediction that Brexit will cost the country over 10% of its economic wealth by 2035, some critics argue that the assessment may be overly negative. Nevertheless, the key takeaway is the rational explanation for London's relative resilience compared to the rest of the country.
Brexit's economic challenges are expected to linger until 2035, amid smartphone market changes. The widening economic gulf between London and the rest of the country raises concerns about the feasibility of initiatives like the Northern Powerhouse and the broader concept of "leveling up."
London's global standing is undiminished, yet the Brexit fallout casts a shadow on the UK's economic equality goals. The promise of "leveling up" now appears, to some, more like a distant and unattainable goal than a viable economic strategy.
