Manufacturing Industries

(asked on 18th July 2019) - View Source

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what discussions he has had with the manufacturing sector on preparing for the UK leaving the EU without a deal.


Answered by
Andrew Stephenson Portrait
Andrew Stephenson
Minister of State (Department of Health and Social Care)
This question was answered on 23rd July 2019

On 28th November 2018, the Government laid before Parliament the document entitled, “EU Exit: Long-term economic analysis” which was intended to facilitate parliamentary scrutiny ahead of the Meaningful Vote on the final deal. The purpose of this analysis was to illustrate high level impacts on the UK from different EU Exit scenarios. It included associated costs for five broad sector groups across the economy, including manufactured goods, which together cover the majority of the UK economy and all traded goods and services.

We understand the impact that continued uncertainty has on firms and the disruption in the event of no deal and continue to discuss the situation with manufacturers and industry bodies, including Make UK. We are also aware that factories are stockpiling essential parts to try to minimise disruption in a no deal scenario, and we acknowledge that this has an impact on costs. The best way to deliver the certainty that our manufacturers need is to agree a deal that delivers on our commitment to leaving the European Union.

The Government is committed to leaving the European Union in a way that underpins prosperity and avoids unnecessary disruption for people and businesses across the UK and therefore has been preparing to minimise any disruption in the event of no deal. Since the extension was agreed, departments have advanced their no deal preparations so that we are ready to implement necessary work in the lead-up to 31 October if needed.

HMRC has written three times to over 145,000 VAT-registered UK businesses who currently trade only with the EU, setting out the actions they need to take, and the changes they need to be prepared for in the event of no deal.

We have advised hundreds of ports, traders, pharmaceutical firms and other organisations that use the borders about potential disruption, so that they can engage proactively with their supply chains. We have published a leaflet for SMEs, that contains advice on actions to take, provides sources of support, and outlines the changes that may affect businesses when the UK leaves the EU.

The Government recognises that the manufacturing sector remains a vital contributor to the economy of the UK, driving innovation, exports, job creation, and productivity growth and we are committed to supporting the sector as the UK exits Europe. Through our modern Industrial Strategy and Made Smarter – our key national industrial digitalisation programme – we are building an economy fit for the future. As the 9th largest global manufacturing economy, we are, and will continue to be, a major manufacturing nation.

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