A DEVASTATING long-term economic impact of a ‘no deal’ Brexit on the North West has been predicted in fresh analysis of government figures by the CBI.

The study predicts the North West could suffer an estimated annual loss of output worth £20 billion by 2034 if the country leaves the EU without a deal.

The automotive sector, which employs thousands, is likely to be severely impacted as it is particularly exposed to the risk of higher tariffs and trade costs.

With 49 per cent of the North West’s goods exports going to the EU, any increased trade friction, added costs or delays would hit the region particularly hard.

One North West employer – an SME chemical manufacturer, said: "We rely heavily on EU suppliers for our raw materials, and EU customers form a large part of our business. We have competitors in the EU, and it is critical we can remain competitive on no-worse than level terms post-Brexit.

“Without frictionless, tariff-free trade and a consistent regulatory framework, it is difficult to see what advantages there are to manufacture in the UK."

Damian Waters, regional director for CBI North West, said:

“We must see compromise or the whole country faces the unforgivable prospect of a disorderly Brexit which will affect jobs and livelihoods in the North West for decades.”