DISRUPTION IN MANUFACTURING SECTOR DUE TO BREXIT WILL HAVE SIZABLE NEGATIVE IMPACT ON UK ECONOMY, NEW REPORT FINDS. Brexit will have significant adverse effects on a UK manufacturing sector highly integrated with the EU single market, and that disruption will have a sizeable negative impact on the wider UK economy, a new report by UK in a Changing Europe finds. The report 'Manufacturing and Brexit', which reviews evidence on the effects Brexit on the UK manufacturing sector, finds the effects will be disruptive and negative. The extent of disruption depends on the outcome of the UK-EU negotiations. A worst-case scenario would be no trade deal between the EU and the UK. This would introduce delays at the UK-EU border and add costs and disrupt tightly interwoven supply chains. Manufacturing will be negatively impacted, and some sectors, such as volume automotive production will particular badly affected, just as they are trying to recover from the slump caused by Covid-19. Few manufacturers have found any benefits from Brexit which, even if a deal is agreed, will cause significant disruption. Manufactures are especially worried about the UK falling out of common EU regulations. They want UK and EU technical, safety, and other regulations to remain aligned. If they do not, then manufacturers will have to make products to different specifications for the UK and EU markets. They also want an agreement that means they do not have to carry out safety and other tests twice.
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