While the country may still be deciding under the terms in which it will be exiting the EU, many national cities are already predicting the losses they will suffer them under the new Custom Unions rules.
While many were earlier denying the claims that the country would suffer any major setback, new studies show that the country’s economy could shrink by as much as 3% over the next decade. Areas such as Devon and Somerset are expected to lose around £1000 per head if the Brexit deal goes through.
Although areas such as Eastern Scotland could lose somewhere around 3-4% of their economy, places like Somerset are close behind with an estimate of 3.2 percent overall.
The government is trying out to figure a way of compromise between EU and UK customs deal. But, even if they make no changes to the current EU Customs Union deal, the country’s economy could take an £80 billion hit.
The worst affected areas are surprisingly the ones in which they voted to leave the European Union in 2016. As reported by the NIESR, areas such as trade, investment, and immigration could be affected adversely in these regions, hitting them hard in the face, which is definitely a rising problem within these areas.
An increase in expenditure due to higher costs for purchasing services outside the EU customs union rule would mean a decrease in the overall revenue of the government, an unwanted effect dealt and felt by the public. This cost will be passed on to the general public by one of the two ways –
- Higher income taxes
- Public service expenditure cuts
Either way, several areas will be hit hard by these budget cuts or eventually, there will be a decline in the public resources. Finding a safe exit out of the EU is becoming more and more difficult with future implications like these.