THE UK is facing economic chaos ahead of Brexit with a slump in wages, declining growth and squeezed household finances, a landmark report warns.

A catalogue of pain is highlighted in findings published by the Trades Union Congress today - the opening day of its annual conference in Brighton.

Last year's vote to leave the EU has already begun to severely weaken the UK's economy less than a decade after the banking collapse and years of austerity, the TUC says.

The report says that Brexit does not explain all the UK's economic misery, with the 2008 crash and spending cuts also affecting wages and household incomes. However, it says the decision to leave the EU "appears to have exacerbated many of these trends".

A sharp fall in the value of the pound, uncertainty and the risk of disruption to trade surrounding Brexit are all to blame for the crises, the report says.

The report - "How are we doing? The impact of Brexit at industry level" - sets out a grim picture of the health of the economy.

"The picture is one of stalling growth, falling real wages, low investment, and a growing dependence on consumer debt," the TUC says.

The TUC claims GDP growth is weaker – at just 1.7 per cent for the last year, and an annual equivalent of 1.0 per cent for the last six months.

Its findings state that the UK has seen "real household disposable incomes fall" since the second quarter of 2017 and that an annual decline of 1.3 per cent is the steepest for over five years.

"Slower growth...is being reflected in lower wages for workers," the report says. Pay growth has fallen by over 50 per cent in manufacturing, electricity, gas and water supply, construction, real estate, public administration and other services, the TUC found.

The TUC also claims the UK's reliance on the EU market has grown – with UK exports to the EU growing by 6.3 per cent in the year to June 2017, compared to just 3.7 per cent for non-EU nations.

Its report states: “Alarming in the context of Brexit is the fact that the UK has become more dependent on exports to EU states over the last year.”

The findings highlight the industries employing millions of people that face the greatest risks from Brexit. Around 2.5 million jobs depend directly on trade with EU states. Of these, 1.5 million are concentrated in business administration, professional and technical services, manufacturing, and finance, the TUC states.

TUC General Secretary Frances O’Grady said: “Our test for a successful Brexit is whether working people are better off. Throughout Brexit, the government must protect jobs, and deliver stronger growth that reaches workers’ pockets through higher pay.

“Successful Brexit negotiations are essential, but not enough. We have to deal with Britain’s long-standing problems like low productivity and weak public investment.

“But with just 18 months to go before we leave, the economy is growing weaker. And Britain is simply not investing enough in the infrastructure we need to compete with the world’s strongest economies.The Chancellor must take action in the budget to boost public investment."

Scotland's Economy Secretary Keith Brown said the TUC's findings showed the threat of Brexit had already harmed living standards.

Brown said: “This report further highlights the danger posed by the UK Government's approach to Brexit.

“It shows that Brexit is already having an impact on people’s living standards, and that leaving the EU will further threaten our long-term economic success, which risks reducing household incomes, employment and funding for public services."

Grahame Smith, STUC general secretary, said: “The problems in the Scottish economy were not created by Brexit, but uncertainty around the future is having a tangible and negative impact. With inflation rising, pressure on living standards is now very real. Debt levels are back to their pre-recession peak as hard pressed workers try to maintain their living standards, and our labour market is increasingly scarred by high levels of insecurity and precarious work.

“Brexit is placing additional economic pressure on our already fragile economy, and the STUC continues to have concerns about the approach of the UK government to negotiations, their wrong-headed attachment to hard Brexit and their callous and unnecessary treatment of EU nationals."

In response, a UK Government spokeswoman said: "The economy has grown continuously for four years and there are more people in work than ever before. As we leave the European Union, we will ensure that workers’ rights are fully protected and maintained. And we will build on our economic success by establishing a deep and special partnership with the EU while embracing the wider world as an independent, open, trading nation."