Southampton: Irwin Mitchell report says Brexit will halve city’s growth over next 12 months
Irwin Mitchell’s UK Powerhouse report, produced on the basis of joint analysis by the national law firm and the Centre for Economic & Business Research (Cebr), says Southampton can expect to see a significant slowdown in economic growth in the next year following the UK’s decision to leave the EU. The report provides an estimate, 12 months ahead of the Government’s official figures, of GVA and job creation within 38 of the UK’s largest cities,
The study reveals that Southampton’s economy is now expected to grow by 0.6% in the 12 months to Q1 2017 - down on the 2% growth rate which was predicted for the same period if the UK had not decided to leave the EU.
The analysis reveals, however, that Southampton’s economy is still likely to improve in the 12 months to Q1 2018, by 1.2%, but this figure is below the growth predicted before the outcome of the referendum was known.
Portsmouth’s economy is expected to be affected in a similar way with output now expected to fall from 1.9% to 0.5% in the 12 months to Q1 2017.
Niall Baker, CEO of Irwin Mitchell’s business legal services team, said: “All of the cities in the study are expected to see growth rates slow significantly, and although there are signs of recovery as we move through 2017 into 2018 output is still anticipated to be lower than it would have been if the referendum vote had gone the other way.
Following the decision to leave the EU, Irwin Mitchell has developed a legal checklist that businesses should consider ahead of the date when the UK formally leaves the EU.
