REGIONS of the UK that have struggled to recover from the financial crisis a decade ago face problems such as losing EU funding after Brexit, a new report warns.
Weak economic performance in areas including Northern Ireland, Wales and the north east of England leaves households particularly vulnerable to the potential impact of leaving the EU, according to the Financial Inclusion Centre.
The gap between the wages of these areas and London has widened in the past 10 years, said the report.
Author of the report, Mick McAteer, said: "If the Government's own economic predictions are correct, Brexit will cause these gaps between the various countries and regions of the UK to widen still further.
"It is only in London and the south east where we see the amount of public revenue generated being greater than public expenditure. This has potentially serious implications for the weaker UK regions.
"In the worst-case scenario, some of the most vulnerable regions could suffer a 'triple whammy' - a very significant loss of potential economic output, the loss of EU funding and third, unless fiscal transfers from stronger parts of the UK economy can be maintained at the same level to mitigate these impacts, the combined economic shock could be severe."
Malcolm Hurlston, chairman of the Financial Inclusion Centre, added: "Mitigation strategies are needed immediately to protect vulnerable regional economies from the impact of Brexit."
