North East set to be poorer as a result of BREXIT

Liberal Democrat Lord Shipley said: “It (the BREXIT vote) means that we’ll be poorer.”

Lord Shipley adds: “My estimate is that we will be as a part of the country, 10-15 percent poorer in terms of the size of our economy.” He feels that this is result of the halt of overseas investment in the North East that the region has historically had.

LibDem Lord Shipley at a Remain rally in Newcastle. Image by Ryan Lim
LibDem Lord Shipley at a Remain rally in Newcastle. Image by Ryan Lim

These investment risks do not just include those of Nissan, but an overall inward investment into the European single market. Should the UK leave the EU, it may not be a part of that single market. As a result, people may not want to invest in the UK after that.

According to the Department for International Trade, foreign investment to the North East has brought 16,511 new jobs. However, as a result of the BREXIT vote 10,864 jobs are now at risk. This is out of a total of 1,177,000 jobs in the North East.

Recently appointed Shadow Minister for Industrial Strategy MP Chi Onwurah hinted that this business uncertainty is a result of the current government’s lack of transparency with issues concerning BREXIT. She has stated that she feels that the current government: “clearly has no plans for BREXIT and they have no inkling how to go about getting a plan.”

She adds that the Government isn’t giving anyone any idea on the key questions or what’s to happen, but people are already experiencing the backlash from it. This has resulted in a certain uncertainty for businesses in the North East as investment decisions have been halted pending the resolution of BREXIT. BREXIT will as a result affect the Economy in the North East.”

LibDem Councilor Niall Hodgson said that: “scaremongering that led to BREXIT vote.” Said with reference to statements by the Leave campaign that: Turkey was going to join the EU; large amounts of money were given to Brussels without any returns. All that has been achieved however is: “collapsing our own currency and harming our own economy and putting the security of our own country; indeed, the formation of our country with Scotland and NI into jeopardy.”

Sunderland City Council has also benefited heavily from the European Regional Development Fund (ERDF) which has led to improvements to the region such as: regeneration to the Port of Sunderland; development of Washington’s business centre; new environmental green corridor areas along the A19. There have also been significant grants given to the University of Sunderland to help students gain a better foothold in the region. A total £320.11 million that has been invested in the North East; Sunderland has gained a total of £22.88 million of the funds.

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