Manufacturers urge government to avoid "economic limbo" after Brexit vote

Jessica Morris
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The New State Of The Art Ford Production Line
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Manufacturers have urged the government to avoid economic limbo and act quickly to secure Britain's industrial future.

It comes ahead of a crunch meeting between business groups and business secretary, Sajid Javid, due to take place tomorrow. Javid has said that the main message will be "there's no need to panic".

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EEF, the manufacturers’ organisation, will call on the government to press ahead with important investment decisions, such as airport expansion, despite the UK's decision to leave the European Union last week.

It also intends to lobby for early assurances about Whitehall's commitment to securing access to the European single market, as well as protecting the UK's trading relationships.

The chair of the World Manufacturing Forum, Marco Taisch, previously told City A.M. that Brexit would lead to the long-term decline of UK manufacturing. He cited its impact on the ability to receive shared technology, knowledge and information.

Terry Scuoler, chief executive of EEF, warned against the government triggering Article 50, paving the way for it to exit the EU, too quickly.

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"The collective commitments to make the referendum work for the UK economy are an important first step in offering some stability for business," he said.

"In mapping out what government needs to focus on now, both in minimising the short-term risk of economic downturn and setting out the UK negotiating priorities, we must bear in mind the warnings of international organisations that the UK’s manufacturing sector was on the ‘at risk’ list in the event of Brexit."