Brexit: Chamber chief calls for clarity as leak says West Midlands will be badly hit

Figures for the region show a free trade deal would result in an eight per cent hit to growth, compared with 13 per cent under “no deal”, and 2.5 per cent if the UK stays in the single market.

London would take the least damage according to the controversial forecasts, which ministers were forced to release after they were leaked to the media amid pressure from Labour and pro-EU Tories.

MPs have been reading the documents, which were prepared by the Department for Exiting the EU, under controlled conditions, but the figures have been leaked.

Richard Sheehan, chief executive of Shropshire Chamber of Commerce, said: “We see from our quarterly economic survey the impact on business confidence that negative or no information can have.

"The chamber has records over the past nine years and as an example just after the election last year we had some results back down to recession levels, they did however recover in later quarters.

"Our day-to-day business engagement is telling us that not many businesses are planning ahead for life after Brexit as they just don’t know what the future looks like.

“As a result they are doing what they do best, rolling up their sleeves, getting stuck in, and taking advantage of the opportunities that are there to grow their businesses.

"It is clear we will face numerous reports and views being released over the coming 12 months, all done with the best intent with many as negative as this.

“It is time for the Government to become much more transparent about progress and the direction of negotiations rather than treating the business community like observers at a poker game.”

The figures showed that London would sustain just a two per cent hit to growth if the UK gets a free trade deal, 3.5 per cent in a no deal scenario, and just one per cent if the country stays in the single market.

Liberal Democrat Brexit spokesman Tom Brake said: “This is a damning outlook for Britain.

"The Tories are putting everything on the line because they do not care about the lives and livelihoods of the people of the UK.

“The Government need to start being clear what they are fighting for.

"They are still keeping no deal on the table despite how crippling it would be to the regional economy.

"People did not vote to make themselves poorer. They should be allowed a vote on the final deal and a chance to exit from Brexit.”

Earlier, Brussels released papers showing it wants to put in place a method to rapidly curtail the UK’s single market benefits if it breaches agreements on a transition deal.

But the Prime Minister insisted she would be “robust” in Brexit talks and dismissed “noises off” from the EU.

Speaking during Prime Minister’s Questions Mrs May said: “We will be robust in our arguments.

“As I have said right from the very beginning we will hear noises off, we will hear all sorts of things being said about positions that are being taken.

“What matters is the positions we take in the negotiations as we sit down and negotiate the best deal. We’ve shown we can do that.

“We did it in December and we are going to do it again.”