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

To ask Her Majesty's Government what assessment they have made of reports of the impact that no-deal Brexit tariff plans could have on possible price rises in the UK automotive sector.

If the UK leaves the EU on 29th March without a deal, the UK would implement a temporary tariff regime. This would apply for up to 12 months while a full consultation, and review on a permanent approach, is undertaken. Tariffs will apply to a number of categories of finished vehicles due to the importance of the sector and broader challenging market conditions.

BEIS Ministers and officials regularly engage with the automotive industry, including bilaterals with manufacturers, interactions via trade associations, and through BEIS’s participation in the Automotive Council. This insight supports policy development within BEIS and work with other Departments.

Leaving the EU with a deal that supports the future of British industry remains the government’s top priority. As set out in the Political Declaration, the UK and the EU have agreed on a free trade area for goods, including automotive. This would combine deep regulatory and customs cooperation with no tariffs and no quotas, underpinned by provisions ensuring open and fair competition.