Labour AM Eluned Morgan says the Prime Minister's speech on Brexit will 'slit the wrists of the Welsh economy'.

The Mid and West Wales AM made the comments after PM Theresa May outlined her plans for Brexit after months of uncertainty following the EU referendum in June.

In her clearest statement to date the PM said her plans for Britain to be a "truly global" trading nation cannot allow the UK to remain in the European single market.

The prime minister confirmed the final Brexit deal reached between the UK and EU will be put to a vote of both Houses of Parliament.

Responding, former minister for Europe in the House of Lords, Eluned Morgan said: “The PM’s pronouncement on Brexit will slit the wrists of the Welsh economy and lead to a decade of instability for the UK. Most leading economists have recognised that leaving the single market will lead to a five per cent shrinkage in the economy which will dramatically reduce public expenditure and have dire consequences for our hospitals and schools in Wales.

“The irresponsible action by the PM of tearing up the rule book in the hope that she will land something better is extremely high risk, in particular when we have so few experts to negotiate trade deals.

“Welsh businesses will find no comfort in this speech, there is no assurance that we will not fall off a cliff edge within two years. This will hit investment and jobs hard."

Meanwhile Plaid Cymru has accused the Prime Minister of pursuing an 'extreme Brexit' and says Labour MPs must now join Plaid Cymru in voting against Article 50.

The party's Brexit spokesperson, Jonathan Edwards MP, urged those in favour of maintaining current trade links with Europe to vote against triggering Article 50.

Responding to the Prime Minister's speech, Mr Edwards, said: "The Prime Minister has put the British State on track for an 'extreme Brexit', isolating Wales and the other UK countries from the rest of the world.

"The Prime Minister has put appeasing her right-wing politicians before protecting the economy and surely the Labour Party must now join Plaid Cymru in voting against triggering Article 50.

"The people voted to leave the EU, not the Single Market or the Customs Union. Nobody voted to make themselves redundant or give themselves a pay cut. For Wales – a country whose economy is heavily dependent on its exports – isolating ourselves from the Single Market will be disastrous."