Warning of Brexit skills 'disruption' to Yorkshire firms

KEY SECTORS of the Yorkshire economy could face 'severe disruption' as a result of Britain's decision to leave the European Union, according to a new report.
Susan HinchcliffeSusan Hinchcliffe
Susan Hinchcliffe

One in 20 workers in the Leeds City Region are EU migrants with the proportion in some sectors much higher.

In manfucturing, seen as vital to the area’s future economic growth, one in eight workers are estimated to be from the EU and more than one third in food manufacturing.

Hide Ad
Hide Ad

The report from the Leeds City Region Local Enterprise Partnership (LEP) on the future skills needs of the area warns: “The intensity of EU migrant employment in some geographic areas, sectors and occupations create a risk of severe disruption for some employers should access to this Labour source be affected by the UK’s decision to leave the EU”.

The future ability of EU nationals to come and work in the UK, known as freedom of movement, is set to be one of the key elements of Britain’s Brexit talks with Brussels.

Theresa May’s promise to allay public concerns over immigration by curtailing freedom of movement has raised concern among some businesses that they could find it harder to recruit the skilled people they need.

The Government has also yet to give an unconditional guarantee that EU workers already in the UK will be allowed to remain once Britain leaves.

Hide Ad
Hide Ad

Bradford Council leader Susan Hinchcliffe, who speaks on skills issues for the LEP, said: “People voted to come out of the EU but the vast majority of people didn’t vote for the wholesale repatriation of the EU workforce. I think that’s clear.

“So we do need Government to make sure they put common sense into negotiations and we do need an agreement with Europe on the movement of labour.

“I would hope that Theresa May would take that seriously and make sure she gives business some certainty about the way forward.”

The Prime Minister faced further warnings over the potential economic impact of leaving the EU from a separate study suggesting £1.2bn would be added to the cost of importing goods if Britain pursued a so-called ‘hard-Brexit’.

Hide Ad
Hide Ad

The Centre for Economics and Business Research looked at the likely cost if Britain was no longer a member of the European single market and customs union and lost access to associated free trade agreements.

Speaking for the Open Britain campaign group, Lord Peter Mandelson, the former Labour business secretary, said: “A hard Brexit could lead to a £1.2bn bombshell for British businesses.

“The billion-pound bill for losing access to trade deals with over fifty countries would be footed by businesses and passed on to consumers with higher prices in the shops.

“Leave campaigners talk about all the free trade deals we can sign outside the EU but do not appreciate the value of those we already have. The EU is a leader in global free trade and we should seek to preserve its benefits, as far as is possible.”

Hide Ad
Hide Ad

Official figures published tomorrow will indicate the extent to which the fall in the value of the pound triggered by the Brexit vote has fed through to prices.

City analysts are predicting the Consumer Price Index measure of inflation will have hit 1.1 per cent in October, up from one per cent in September. Inflation is forecast to eventually hit more than three per cent.