Thinktank warns of labour shortages in London and the south-east without an EU deal

Britain would face labour shortages in London and the south-east from a no-deal Brexit, according to a report calling for the government to extend freedom of movement for EU migrants to protect the wider economy.

The Centre for Cities thinktank urged the government to extend freedom of movement for two years after the UK leaves the EU on 29 March 2019, in the event of no deal on the terms of exit and future relations with the union.

Publishing a report on EU citizens working in British towns and cities across the country, the Centre for Cities warned cities such as Oxford, Cambridge and London, where the vote was in favour of remaining in the EU, are reliant on EU migrants, making them particularly vulnerable to tougher immigration rules should Britain crash out without a deal.

The report said about one in 10 employees in major southern cities were from the EU. It said they had brought with them “significant economic benefits” to the wider British economy, which could be put at risk from a no-deal Brexit.

Andrew Carter, chief executive of Centre for Cities, said: “[The government] should continue to allow EU migrants to come and work in UK cities for at least the next two years, even if there is no Brexit deal in place. This will be crucial in helping cities avoid a cliff edge in terms of recruiting the workers they need.”

The report comes ahead of the government’s publication of a series of technical notices detailing the impact of a no-deal Brexit.

Suggesting the impact would be more complex and spread across the country, the report said many remain-voting metropolitan centres required continued access to the EU for low-skilled hospitality workers, as well as highly qualified professional services staff.

While Cambridge had the highest share of EU migrant workers – about 12% of the workforce – Middlesbrough, Birkenhead, Newcastle and other places in the north of England had a much lower proportion, about 1%.

Supporters of Brexit have repeatedly argued that EU migrants make it harder for British workers to find work. However the thinktank said losing them would raise questions over the ability of cities to prosper. It said many of the most productive places in the UK had higher proportions of EU workers.

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EU migration has slumped since the referendum, suggesting the UK has already become less attractive for many European workers. The report found migration from the rest of the EU has dropped in 51 out of 58 English and Welsh cities since before the referendum was held two years ago.



The report called on the government to allow temporary visas for low-skilled workers, and scrap arbitrary restrictions on high-skilled workers. It also said there should be more government funding for training and education in cities to help address skills shortages in the long-term.

Although ministers have committed to continued free movement during a two-year transition period until the end of 2020, failure to reach a deal with Brussels before the end of March could throw that into doubt.