The chemical industry, the nation’s biggest manufacturing exporter, has said more companies in the past three months saw reductions in exports and lost jobs as the Brexit uncertainty continues.
In the latest quarterly business survey of member companies, the Chemical Industries Association forecasts an unfavourable year ahead, with businesses predicting a continued fall in exports and drops in margins.
Chief executive Steve Elliott, said "The first quarter boost in UK chemicals and pharmaceutical production, fuelled by stockpiling to combat a no deal Brexit, fell back over the past three months amidst renewed hope of a deal following the announcement of the extension of our EU membership to the end of October. However, as the odds continue to shorten on a no deal outcome, we have the most uncertain business investment conditions for decades."
The North West, North East and Yorkshire and Humber are the three largest clusters in the UK, with 51 per cent of the 140,000 employees in the £48 billion turnover industry there.
Mr Elliott continued: "If we are to leave the European Union then let us quickly sort out the legal and economic framework in which businesses will operate. Since the day after the referendum we have pointed to the need for a tariff-free trading relationship with the European Union, the avoidance of non-tariff barriers, regulatory consistency and unrestricted to access to skills. Not achieving these would be further damaging for business and the money that could have been invested in the UK. The ongoing uncertainty is now almost as bad according to our survey.
"The sharp drop in capital expenditure – now halved compared to a year ago - is a further signal that businesses will not wait for politicians."
Europe is the number one market, with many member flags flying at UK sites. One, French-owned Total Lindsey Oil Refinery, at North Killingholme, near Immingham, has had no-deal concerns expressed in the House of Commons.
Just down the road in Grimsby and pharmaceutical giant Novartis is closing operations down with the loss of 400 jobs looming by the end of December 2020, though Brexit has not been blamed.
Mr Elliott added: "We all fully respect a democracy and political system but it is difficult to recall a time when politicians themselves have been so unsure on determining our future. Quite rightly, businesses have not just made plans for a no deal but are increasingly implementing those plans in the face of this vacuum. Some certainty allows business to make investment decisions for the long-term; right now I am not sure the UK can predict what is happening next week.”
