The UK’s motor industry faces extinction if the UK leaves the EU customs union after Brexit, CBI president Paul Dreschler has warned.
Mr Dreschler instructed the BBC’s Right this moment programme there was “zero proof” that commerce offers outdoors the EU could be of any financial profit to the UK, and stated the automobile industry particularly would endure with out “actual frictionless commerce” post-Brexit.
UK automobile gross sales anticipated to drop for 2 years, warns motor industry physique
“If we don’t have a customs union, there are sectors of producing society within the UK which danger turning into extinct,” he stated. “Be in little question, that’s the actuality. There’s zero proof that impartial commerce offers will present any financial profit to the UK that is materials. It is a fantasy.”
He added that delays to enterprise funding had been additionally creating issues for the UK economic system.
“We already know tens of thousands and thousands, in truth lots of of thousands and thousands have been invested by UK pharmaceutical and finance corporations to create continuity publish a worse-case Brexit situation. Tens of thousands and thousands. What may we’ve accomplished with that cash?” Mr Dreschler stated.
The CBI chief’s warning comes days after official information revealed UK manufacturing suffered its worst month in additional than 5 years in April.
Output from corporations fell 1.four per cent within the month in response to the Workplace for Nationwide Statistics, following the zero.1 per cent decline in March, within the worst month-to-month efficiency since October 2012. Metropolis analysts had anticipated a zero.three per cent growth.
In the meantime, motor producer Jaguar Land Rover introduced in April that it could lower 1,000 UK jobs, due partly to the continued uncertainty round Brexit, and earlier this week the automobile maker revealed plans to maneuver manufacturing of its Land Rover Discovery mannequin from the UK to Slovakia.
Nissan additionally stated it could lower lots of of UK jobs in April, however the Japanese group stated the choice was not linked to Brexit, however as a substitute was linked to declining diesel demand.
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