business for a people's vote - People's Vote

business for a people's vote

A dossier published by the People’s Vote’s campaign has uncovered the damage Brexit is already causing across British industry.

The Leave campaign promised the British people Brexit would be good for jobs. Boris Johnson, Michael Gove and Gisela Stuart said it would be “the right choice” for jobs, and Vote Leave claimed it would create up to 300,000 new jobs in Britain.

But, as the dossier published today by Business for a People’s Vote shows, since the referendum in 2016 jobs have already been cut, investment has suffered and confidence has been battered. It sets out the damage that Brexit has caused to the business community even before the UK is due to leave the European Union. And it explains why the deal agreed this week would only mean worse is to come.

Much of this has been a silent retreat from the UK but this research shows that the following can be directly attributed to Brexit:

  • Almost 50 employers in the UK have confirmed over 21,000 jobs will be lost directly because of Brexit.
  • The UK has lost £42 billion since June 2016 in business investment because of Brexit.
  • This has cost a further 24,000 new jobs.

 

But this is just the tip of the iceberg because the UK has not yet left the European Union. As the dossier shows, this bad Brexit deal will do nothing to end the uncertainty and chaos. An analysis of TUC figures shows that 2.5 million jobs in Britain are currently reliant on our trade with the EU. If this Brexit deal goes ahead the consequences for UK businesses will be grave.

Since the referendum, investments have been postponed or new projects shelved – while the new laboratories, factories and warehouses that were supposed to power our economy forward have been cancelled.

Comparing the OBR forecasts from before the referendum to what has happened since shows that business investment growth is 13% lower than it would have been. The heightened uncertainty following the referendum and the botched negotiations of the last two years have led businesses to hold off on investment, or cancel it altogether.

 

John Neill, chairman and CEO of Unipart – one of the biggest privately owned companies in the UK - said:

“Even before this deal is implemented, this report published today shows how many firms have cut staff, stopped investment and begun moving operations abroad. They have done so neither through a lack of patriotism nor political motivation but because Brexit has clouded and is clouding our country’s future. A no-deal Brexit  - or for that matter any deal - which creates friction at the borders will lead to many industries in the UK, including car-makers and component manufacturing,  becoming increasingly uncompetitive in global markets.

“Why would any rational country choose to leave the world’s biggest, richest, closest, free trade market where our brands are well known, our distribution channels established with skilled people to service our high value added products? EU membership gives us access to all the markets they have done deals with and those they will do deals with from a position of strength in the future. In addition, we have a seat at the table to make the laws, adjudicate the laws and enforce the laws that affect our products and services. The alternative of going it alone for the remaining sixteen percent of world trade in markets that are small and often very far away, is not attractive.  It’s time to stop the slogans and soundbites and focus on the facts and figures.

“The only way we can provide good jobs and high-quality public services is to persuade the world class companies that are in Britain to stay here and invest here and the ones that aren’t, to come here. The country needs a solution that reverses the current trend and brings investment back to the UK.  When the facts change, a democracy means that people have the right to change their minds and a People's Vote would give them the chance to do so.”

/Ends.

 

Notes to editors

  1. The full dossier can be downloaded here: https://bit.ly/2PAtmb7
  2. The Leave campaign promised the British people that Brexit would be good for jobs.

 

Vote Leave said Brexit would “create more jobs”: “We will negotiate a new UK-EU deal based on free trade and friendly cooperation. We will carry on trading with Europe but we will also be able to negotiate trade agreements with other countries. This will help our economy grow and create more jobs.” (Vote Leave, 2016, link).

 

Vote Leave said Brexit would create 300,000 additional jobs. “When we Vote Leave we will be able to do trade deals with all of these countries much more quickly. According to the EU’s own figures this will create 284,000 new jobs in the UK.” (Vote Leave, 12 May 2016, link).

 

Boris Johnson, Michael Gove, and Gisela Stuart said that Brexit would be the right choice for jobs. “That is why we believe a Vote to Leave is the right choice for social justice, safer for public services, jobs, and families and better for the next generation.” (Boris Johnson, Michael Gove, and Gisela Stuart, 3 June 2016, link)

 

But 49 employers in the UK have already confirmed over 21,000 job losses because of Brexit so far

Employer

Industry

Jobs lost

Location

Date

Source

Schaeffler

Manufacturing

500

Plymouth

181106

Link

British Steel

Steel

400

Multiple

180914

Link

BNP Paribas

Financial services

90

London

181105

Link

Nomura

Financial services

100

London

180809

Link

Bank of America

Financial services

200

London

180806

Link

Société Générale

Financial services

400

London

171023

Link

UBS

Financial services

20

London

180309

Link

Commonwealth Bank of Australia

Financial services

50

London

181029

Link

Smurfit Kappa

Manufacturing

50

Midlands

181006

Link

Barclays

Financial services

200

London

180702

Link

Morgan Stanley

Financial services

500

London

180613

Link

Panasonic

Manufacturing

20

 

180810

Link

Navfor (EU piracy task force)

EU Agency

40

London

180730

Link

Alan Nutall Partnership

Retail

245

 

180709

Link

Wrightbus

Manufacturing

95

Ballymena

180606

Link

Lloyd's of London

Financial services

40

London

180531

Link

Discovery Channel

Telecommunications

100

London

180528

Link

Fruit of the Loom

Textiles

70

Telford

180522

Link

Bet365

Financial services

1000

Gibraltar

180520

Link

Aim Hire

Human resources

100

Teddington

180518

Link

Jaguar Land Rover

Manufacturing

1000

 

180917

Link

Northwood Hygiene Products

Manufacturing

65

Meltham

180412

Link

JP Morgan

Financial services

1000

London

180125

Link

UBS

Financial services

180

London

180309

Link

Severfield

Steel

70

Bolton

180307

Link

Standard Chartered

Financial services

20

London

180307

Link

Maplin

Retail

2335

Multiple

180225

Link

Ryanair / Glasgow Airport

Aerospace

300

Multiple

180228

Link

Credit Suisse

Financial services

250

London

180226

Link

Galileo Security Surveillance Centre

EU Agency

100

Swanwick

180118

Link

Multiyork

Manufacturing

547

Multiple

171123

Link

Lush

Cosmetics

80

Poole

170317

Link

Cummins Generator Technologies

Manufacturer

500

Stamford

171005

Link

Monarch Airlines

Aerospace

1858

Multiple

171002

Link

Credit Agricole

Financial services

50

London

170921

Link

Mitie

Engineering

480

Multiple

170921

Link

Southern Salads

Manufacturing

260

Multiple

170817

Link

Wilko

Retail

4000

Multiple

170811

Link

European Banking Authority

EU Authority

160

London

171121

Link

Foster & Partners

Architecture

100

London

170424

Link

Diageo

Manufacturing

105

Leven and Shieldhall

170420

Link

European Medicines Agency

EU Agency

900

London

180902

Link

Lloyd's of London

Financial services

100

London

170329

Link

HSBC

Finance

1000

London

161030

Link

Tesco

Retail

1015

Multiple

160109

Link

Jamie's Italian

Retail

120

Multiple

160831

Link

Hewden

Construction

251

Multiple

161122

Link

Rivington Biscuits

Manufacturing

123

Wigan

161215

Link

ITV

Media

120

London

161024

Link

 

Reduced inward investment has cost the UK 24,000 new jobs since the referendum

 

2015-16

2016-17

2017-18

UK region

FDI projects

New jobs

FDI projects

New jobs

FDI projects

New jobs

East Midlands

85

3678

74

1796

72

3714

East of England

116

3280

125

3634

94

2235

London

889

24191

891

20753

740

17478

North East

77

2991

69

4609

69

2379

North West

151

7715

147

6501

139

3689

Northern Ireland

33

2068

34

1622

28

1251

Scotland

108

4178

183

5547

141

4148

South East

253

5507

217

5432

294

5238

South West

89

2434

101

3402

99

3653

Wales

97

5443

85

2581

57

3107

West Midlands

168

11119

151

6570

171

9424

Yorkshire and Humber

104

2992

132

3872

107

4623

England w/o London

1043

39716

1016

35816

1045

34955

Total

2170

75596

2209

66319

2011

60939

Loss

*

*

*

9277

*

14657

(Department for International Trade inward investment results, 26 June 2018, link / Office for Budget Responsibility, 29 October 2018, link)

 

Brexit has cost the UK £42 billion in business investment since the referendum

 

 

2015

2016

2017

2018

Total

March 16 Growth Forecast

*

2.6

6.1

5.8

15.2

Brexit Growth Reality

*

-0.5

1.8

0.5 (forecast)

18.0

Investment (£ billions) Forecast

174.5 (actual)

179.0

190.0

201.0

744.5

Investment (£ billion) Actual

174.5 (actual)

173.6

176.8

177.6

702.5

Brexit Loss (£ billion)

*

5.4

13.2

23.3

42.0

(Office for National Statistics, 31 March 2016, link / Office for Budget Responsibility, 29 October 2018, link)

 

TUC figures show that over 2.5 million jobs are reliant on our trade with the EU

Industry

Number of jobs

% reliant on EU trade

Jobs reliant on EU trade

Agriculture, forestry & fishing

350,000

6.2

21,685

Mining, energy and water supply

586,000

45.7

267,823

Manufacturing

2,880,000

16.6

478,025

Construction

2,326,000

0.9

20,936

Wholesale, retail & repair of motor vehicles

4,222,000

1.2

50,659

Transport & storage

1,625,000

14.1

229,121

Accommodation & food services

1,791,000

5.2

93,142

Information & communication

1,324,000

9.2

121,796

Financial & insurance activities

1,279,000

19.5

249,332

Real estate activities

347,000

0.2

693

Professional, scientific & technical activities

2,435,000

23.8

579,530

Administrative & support services

1,570,000

22.2

348,646

Other services

1,859,000

0.8

14,871

Education, Health and Public Administration (TUC category)

9,492,000

0.3

28,476

TOTAL

32,085,000

 

2,504,734