Deputy News Editor
With Brexit rapidly approaching, new research claims that Glasgow could lose 38,000 jobs and be £2.35 billion worse off if the UK is to leave the EU without a deal.
These figures were published in a report by city council economists, which was obtained by The Sunday Times. The report examines how a no-deal Brexit would impact the economic growth of businesses, production and labour markets in Glasgow.
The report assesses how the council is working with national agencies, such as Scottish Enterprise and Skills Development Scotland, to prepare to support businesses and individuals who will be impacted by Brexit.
It determines that under no-deal, Glasgow’s economic growth would be £2.35 billion worse off over a four-year period. The city would also lose approximately 24,000 jobs in the next two years and could prevent 14,000 new jobs from being created. Furthermore, the total number of businesses are projected to rise by 1,200 in two years, but this number would be lowered to 900 if no-deal passes.
Susan Aitken, leader of Glasgow City Council, commented: “It’s clear a no-deal Brexit would be catastrophic for Glasgow. It would take decades to recover from a hit to the economy of this size.”
The leader of the Labour opposition in Glasgow City Council, Frank McAveety, said: “The city has worked hard over a decade to recover from the 2008 financial collapse. However, this report indicates that a no-deal would be difficult for the city to withstand.”
A no-deal Brexit is now seeming more likely, as Prime Minister Boris Johnson previously stated that the chances of no-deal were a “million to one”, but has now said the chances are “touch and go” in a recent interview at the G7 summit, and with his plan to use the proroguing of parliament to force Britain out of the EU.