British regions that voted for Brexit are among those most at risk from the economic consequences of leaving the EU, a new report has found.

Cross-party think tank, Demos, came to the conclusion after studying regions reliance on exports to the EU, use of non-British European workers and receipt of support grants across the UK.

They found that area most vulnerable to the effects of a so-called “hard Brexit” if the UK does not negotiate access to the Single Market, was Wales, where 52.5 per cent of voters opted to leave, while 47.5 chose to remain.

With over 60 per cent of the country's exports going to the EU meaning it could be hard hit by tariffs.

Wales is also threatened by the loss of EU grants, which the devolved nation benefits from far more than any other British region.

EU funds make up almost one per cent of its total annual output in terms of goods and services – more than three times higher than anywhere else in the UK.

The north-east and the east Midlands are also relatively highly reliant on the EU despite both regions having a high proportion of Brexit voters, the report found.

But it is not only Brexit-leaning areas which could be left economically exposed, with London – which voted heavily for Remain – also likely to be hard hit because of its reliance on EU workers.

The Government has indicated it will prioritise control of immigration over access to the single market, which is almost certain to result in a sharp drop in the numbers of EU workers coming to the UK.

Loughs, Brexit and fishermen in Northern Ireland Show all 14 1 /14 Loughs, Brexit and fishermen in Northern Ireland Loughs, Brexit and fishermen in Northern Ireland Enda Craig, a member of the Loughs Agency Advisory Forum, holds a map of Lough Foyle in Moville, Ireland Reuters Loughs, Brexit and fishermen in Northern Ireland Oyster farmer William Lynch puts on his wellington boots on his oyster farm on Lough Foyle in Culmore, Northern Ireland Reuters Loughs, Brexit and fishermen in Northern Ireland Women walk along the shores of Carlingford Lough with Northern Ireland seen across the lough in Carlingford Reuters Loughs, Brexit and fishermen in Northern Ireland A poster hanging on a wall of a house reads: "No to the ferry", referring to a proposed new car ferry that would run from Northern Ireland to the Republic of Ireland through Carlingford Lough in Greencastle Reuters Loughs, Brexit and fishermen in Northern Ireland Skipper Shay Fitzpatrick (L) and boat owner Brian Cunningham navigate out of Warrenpoint harbour into Carlingford Lough in Warrenpoint, Northern Ireland Reuters Loughs, Brexit and fishermen in Northern Ireland A woman with flowers walks past an old fuel station in Carlingford, Ireland Reuters Loughs, Brexit and fishermen in Northern Ireland A boat is seen at sunset on Carlingford Lough in Greenore, Ireland Reuters Loughs, Brexit and fishermen in Northern Ireland A mandries off after swimming in Carlingford Lough in Omeath, Ireland Reuters Loughs, Brexit and fishermen in Northern Ireland A derelict house is seen on the shore of Carlingford Lough in Omeath, Ireland Reuters Loughs, Brexit and fishermen in Northern Ireland Skipper Shay Fitzpatrick dredges mussels from Carlingford Lough in Warrenpoint, Northern Ireland Reuters Loughs, Brexit and fishermen in Northern Ireland Bagged-up farmed oysters at a cleaning facility to get them ready for overseas shipping in Moville, Ireland Reuters Loughs, Brexit and fishermen in Northern Ireland A man walks his dog in matching hi-vis outfits on Carlingford Lough in Greenore, Ireland Reuters Loughs, Brexit and fishermen in Northern Ireland Carlingford Lough and in the distance Northern Ireland are seen at sunset from Omeath, Ireland Reuters Loughs, Brexit and fishermen in Northern Ireland A sign that reads: 'In 1721 nothing happened here' is seen on the shores of Carlingford Lough in Carlingford, Ireland Reuters

With 17 per cent of its workforce currently made up of EU workers, it is thought that drop could have serious economic consequences for the capital.

Northern Ireland, where a majority also voted to remain, could also be left vulnerable because of its relatively high percentage of EU workers and its reliance on European structural grants.

Manufacturing, agriculture, and energy are sectors likely to be worst hit by a hard Brexit due to the combined effects of large numbers of EU workers, high levels of exports to the EU, and the likelihood of high tariffs on their products.

Brexit will also likely result in the UK leaving, or retaining only partial membership of, the Customs Union.

With tariffs imposed on British goods at the levels currently paid by non-EU states, industries likely to face the highest duties will be agriculture, forestries and fishing, mining and quarrying and manufacturing.

UK producers of dairy products, confectionary, alcohol and tobacco will be hit with the costliest duties, with the highest tariffs of exports into the EU at 33.5 per cent for dairy produce.

Manufacturing will also be particularly vulnerable to the threat posed by reduced trade and immigration to and from from the EU where one in 10 of its workers originate and 45 per cent of its products are exported.

The report warns that despite fears around the likely loss of low-skilled workers coming from the EU, the UK also needs to prepare for a significant loss of labour in high-skilled manufacturing and engineering sectors.

The think tank claims Brexit should be a wake-up call to the UK to skill-up its own work force so the country becomes less reliant on foreign workers in the future, calling it “an opportunity to fundamentally rethink and ‘level up’ the economy towards high skills and high productivity, looking beyond immigration policy, to encouraging investment in education and adult skills.”

The researchers did not attempt to analyse the potential for future trade deals outside the EU, the potential impact of UK-imposed restrictions on trade or the potential gains from being outside the Customs Union, all of which could potentially mitigate the risks identified.

The Government has said repeatedly it hopes to soften the blow of leaving the single market by signing a new free trade arrangement, but the EU’s negotiators have insisted they will not give the UK a “sweetheart deal”, leading to fears the country will crash out with no deal at all.