LONDON – Wealthy Southern cities are predicted to be hardest hit by Brexit, according to a new report.

The study, by the Centre for Cities and the Centre for Economic performance at the London School of Economics, found that cities with large high-skilled service sectors, such as business and financial services, are expected to be worst hit by potential tariff changes.

More prosperous places in the North, the Midlands and Wales, which have low numbers of highly skilled workers and smaller knowledge-intensive private sectors, will be least directly impacted by any form of Brexit.

But, it says, this makes them less well equipped to respond to the economic shocks ahead.

A 'hard' Brexit is also likely to double the economic impact of leaving the EU: the average drop in economic output across all UK cities is estimated to be 2.3% in the event of a 'hard' Brexit, and 1.2% in the event of a 'soft' Brexit.

These estimates are based solely on expected increases in trade costs.

"All UK cities face significant economic challenges after we leave the EU, but the impact of both 'hard' or 'soft' Brexit will be felt very differently across the country," said Andrew Carter, chief executive of Centre for Cities.

"Contrary to much of the received wisdom on Brexit, it is the most prosperous UK cities which will be hit hardest by the downturn ahead — but poorer places across the North and Midlands will find it tougher to adapt," he said.

Carter said the government should ensure post-Brexit trading arrangements remain as close to the current agreements as possible, and that cities receive enough investment to help them weather the combined challenges of Brexit, globalisation and automation.

"This research shows that focusing on the likely local economic impacts of Brexit will be a critical ingredient for policymakers when thinking about how to offset the negative economic effects that loss of trade due to Brexit will bring," said Stephen Machin, from the Centre for Economic Performance.

Keep scrolling for a list of the six cities predicted to be most affected by a 'hard' Brexit.