EEF warns of Brexit ‘tipping point’ for companies unless exit strategy is clarified

The manufacturers’ organisation, EEF, has warned that unless the government radically improves and clarifies its strategy for Brexit, British firms face a ‘tipping point’ regarding decisions on investments and jobs.

Chief executive of EEF, Terry Scuoler, addressed the president of the European Parliament, Antonio Tajani, in Strasbourg today to reinforce concerns raised by the chancellor of the exchequer, Rt Hon. Philip Hammond MP.

“The UK chancellor, speaking in Germany last week, set out a vision for growth in the UK and in Europe. He was right to highlight our joint interests amid the complexity of the Brexit negotiations. Many of our industries are interconnected,” Scuoler said. “UK businesses need to know soon what arrangements will be in place after March 2019, to be able to plan, make investment decisions and have confidence that an orderly and carefully managed approach to Brexit is underway.”

“If they don’t have that assurance there will come a tipping point, sometime in 2018, when boards in the UK and elsewhere will need to make decisions based on the state of negotiations at that point. They cannot wait until the end of the process for confirmation of a deal on our departure or future trading relationship,” he added. “They need to know much sooner what transitional arrangements will be in place, and for how long. A failure to do so will damage our collective economic interests, a situation which would be as tragic as it would harmful.”