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Brexit
Opinion
David Brown
David Brown

Macroscope | Brexit is knocking out British industry, and it may not bounce back

David Brown says UK companies are already feeling the pain of losing their stake in European ventures and access to the single market, yet the government appears clueless about the impact of Britain’s departure from the union

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An employee works on the final assembly line at the Vauxhall plant in Luton, Britain, in April. The UK automotive industry, once the joke of British manufacturing, is now one of the jewels in Britain’s industrial crown, employing nearly one million workers. Brexit could change this overnight. Photo: Bloomberg
David Brown
Britain is bearing the scars of a car-crash economy as the political crisis deepens over Europe. More firms are voting with their feet in a desperate attempt to avoid the likely chaos when the country finally quits the European Union. If the corporate exodus from the UK turns into a stampede, Britain’s industrial prosperity could be ruined forever. 
Britain is heading into the unknown. By now, the government should have had a much clearer idea about what impact Brexit would have on the economy, but politicians seem increasingly baffled about what the consequences will be for UK manufacturing, services and its financial markets. 

Those tasked with the job of finding out what happens to the economy after Brexit have come up empty-handed. Promised detailed government analyses of the 39 key business sectors likely to be affected by Brexit have been a sham. British industry is heading into an uncertain future without a strategy. 

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It is a far cry from what was expected when Britain joined the European Economic Community back in 1973 when hopes were high that Britain could thrive and prosper under membership of the single market. The new door into Europe would present untold business and trading opportunities for British companies, economic growth would pick up and UK living standards would improve. Now that door is about to close, there is real fear that the benefits will quickly unravel. 

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A man walks past a campaign poster in London in November 2015, ahead of the referendum held in June 2016, in which a majority of Britons voted to leave the European Union. Photo: AFP
A man walks past a campaign poster in London in November 2015, ahead of the referendum held in June 2016, in which a majority of Britons voted to leave the European Union. Photo: AFP 
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