Heseltine – We cannot afford to lose businesses to the obsession of Brexit - People's Vote

Heseltine – We cannot afford to lose businesses to the obsession of Brexit

Commenting on the collapse of British Steel into administration, Rt. Hon. Lord Heseltine CH PC, former Deputy Prime Minister and leading supporter of a People’s Vote, said:

“How many more economic and industrial hits are we going to take before Government, Parliament and country wake up to the scale of economic damage Brexit is already inflicting and just how much worse it will get?

“It is time the Government intervened to back a People’s Vote. It is the only solution to the Brexit crisis that can offer the stability and closure for the future that business desperately needs.

“We cannot afford to see more and more essential businesses fall under the hammer for the sake of an ideological obsession.

“Instead, to secure a stable majority, MPs from both sides of the House of Commons who care about the national interest will have to come together both to prevent a no deal Brexit being imposed on the British people without their explicit consent and to give the public the final say on whether to go ahead with Brexit.”

 

The People’s Vote campaign also published a survey of businesses that had lost jobs and investment as a result of Brexit.

The campaign has identified 59 employers in the UK have already confirmed nearly 24,000 job losses in whole or in part because of Brexit:

Employer

Industry

Jobs lost

Location

Date

Source

Thomas Cook

Retail

320

Multiple

190516

Link

EU NAVFOR

EU Agency

101

London

190329

Link

Bodyshop

Retail

20

South East

190314

Link

FlyBMI

Aerospace

376

Multiple

190216

Link

Oddbins

Retail

550

Multiple

190201

Link

Bank of America

Financial services

400

London

190128

Link

Phillips Avent

Manufacturing

430

Glemsford

190117

Link

Central Wire

Manufacturing

15

Rotherham

181203

Link

Vauxhall

Manufacturing

241

Ellsmere

181124

Link

BrokerTec / NEX

Finance

12

London

181108

Link

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

Scotland

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

/ends

 

Notes to editors:

The Leave campaign promised the British people that Brexit would be good for jobs

Vote Leave said Brexit would “create more jobs”. “WHAT WILL HAPPEN TO TRADE AND JOBS WHEN WE VOTE LEAVE? 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)

 

We have seen a flurry of businesses relocating from the UK to other EU countries already

Steris PLC is redomiciling to Ireland because of Brexit. “Given the protracted uncertainty surrounding the outcome of negotiations between the United Kingdom and the European Union regarding the terms of the United Kingdom’s withdrawal from the European Union (“Brexit”), STERIS has evaluated many alternatives. Following this evaluation, the Board concluded that redomiciling to Ireland is the best path forward for STERIS to preserve certain financial benefits it currently enjoys as a company domiciled in a European Union member country, including preserving the benefits of certain treaty arrangements” (SeekingAlpha, 6 November 2018, link)

 

European Medicines Agency is relocating its headquarters to Amsterdam, from London, because of Brexit “ One of the consequences of Brexit is that EMA will relocate to Amsterdam, the Netherlands, where it has to take up its operations on 30 March 2019 at the latest”. In a wider article, Fierce Pharma notes the impact of the EMA relocation, will be 900 jobs losses and an estimated economic impact of $1 billion.  (EMA Europe, link) (Fierce Pharma, July 2018, link)

 

Chubb European Group SE (CEG) and ACE Europe Life SE (AEL) to redomicile to France as a result of Brexit. As the UK is part of the EU single market this allows Chubb entities to operate in all EEA countries. This is likely to change as a result of Brexit. From 1 January, 2019, the new registered address for Chubb European Group SE and ACE Europe Life SE will be La Tour Carpe Diem, France. (Chubb, link)

 

Columbia Threadneedle moves UK funds over Brexit Fears. Michelle Scrimgeour, chief executive for Europe, Middle East and Africa at Columbia Threadneedle, said: "Our priority is to provide certainty and continuity for our clients. "By facilitating the transfer of European customers to our existing Luxembourg range we will ensure they can continue to access our best investment strategies in a Ucits-compliant fund, regardless of the final agreement between the UK and the EU. For EU investors, the transfers will remove uncertainty regarding the future status of their investment in their home country.” (FT Adviser, 9 May 2018, ( link)

 

Liberty to redomicile its UK Insurance company to Luxembourg. LSM’s President & Managing Director Matthew Moore said, “Our European insurance and reinsurance businesses are highly valued at LSM.  The structure that we are announcing today will set us up perfectly to take advantage of the opportunities that we have in Europe in the post-Brexit environment.  Moving our insurance company to Luxembourg will minimise any disruption to our clients and staff by providing continuity of our insurance company paper.  We have ambitious growth plans for our teams based in Europe, and I am delighted that we have been able to secure a first class leadership team in Eric Daout, Dieter Winkel and Kadidja Sinz, ably supported by high calibre service-driven underwriting teams.  We also remain committed to London and will retain a substantial presence there. (Liberty Speciality Markets, 8 December 2017, link)

 

Admiral Insurance Company transfer of European business to Admiral Europe, Spain. Admiral is seeking to transfer its Italian and Spanish insurance business from Admiral Insurance Company Limited (AICL) in the UK to Admiral Europe Compañía de Seguros S.A. (AECS) based in Spain, with effect from 1st January 2019. (Admiral Group, link)

 

Swissquote Bank to relocate to Luxembourg in lieu of Brexit. “We are operating already today in Europe, unfortunately it is out of London. With the coming Brexit we needed to have strategic options and Luxembourg is a very good place for these,”- Chief Executive Marc Buerki. (Reuters,  7 August 2018, link)

 

STM Life move to Malta ahead of Brexit. “The STM Life board has now made its decision to redomicile from Gibraltar to Malta so as to be in a position to service its EEA based clients going forward, and this project has now commenced,” (International Investment, 11 September 2018, link)

 

RSA Europe taking steps to relocate to Luxembourg. As a result of the UK’s prospective withdrawal from the European Union (EU) (commonly known as “Brexit”), Royal & Sun Alliance Insurance plc (RSAI), is taking the necessary steps to establish a new legal entity in Luxembourg, RSA Luxembourg S.A. (RSAL). (RSA Group, link)

 

AIG plans to relocate amidst Brexit result. AIG will transfer all of AEL’s existing UK insurance business to the new UK insurance company, and at the same time, will transfer AEL’s existing European business to the new Luxembourg Company.  AIG currently operates in Europe through a single legal entity: AIG Europe Limited (AEL), a UK insurance company with branches across Europe.  We are restructuring AEL in response to the UK’s decision to leave the European Union (commonly known as “Brexit”). By restructuring, we are seeking to ensure that we can continue to service policyholders in the UK and across Europe after Brexit. (AIG, link)

 

GSK to move entities to EU. GSK is moving Marketing Authorisations registered in the UK to an EU entity as a result of Brexit, by March 2019. (GSK Annual Report, 2017, link)

 

CME Group to move to Amsterdam. “All of our euro-denominated bonds and repo will move to Amsterdam,” John Edwards, managing director of BrokerTec Europe, said in an interview. “We saw no benefit in splitting liquidity pools. Our U.K. business will not be able to provide services to the European clients.” (Bloomberg, 6 November 2018, link)

 

Tokio Marine Kiln sets up new company in Luxembourg. To ensure that we can continue to trade as we do now across Europe after Brexit, we announced our decision (in September 2017) to set up a new European insurance company in Luxembourg to cater for our corporate business across Europe. For our syndicate business in the London market we are aiming to use the Lloyd's subsidiary currently being set up in Brussels. (Tokio Marine Kiln, link)

 

QBE Insurance transfers general business from UK  to Europe. QBE Insurance (Europe) Limited move the general insurance business written through its European branch network and QBE Re (Europe) Limited move the reinsurance business (written through its Belgian, Bermudan and Irish branches) to QBE’s new Belgian (re)insurance entity, QBE Europe SA/NV. David Winkett, Chief Financial Officer for QBE Europe, said: “We are delighted with the outcome of the High Court hearing. This is further demonstration of QBE’s advanced state of readiness and our plans to provide certainty, continuity and business as usual service to our customers across the European Union following Brexit. QBE will also use this opportunity to further develop its footprint in Continental Europe.” (QBE Europe, link)

 

XTX Markets to set up Paris hub. XTX Markets, one of Europe’s largest market makers, is to set up a hub in Paris to prepare for the UK’s departure from the European Union.  Zar Amrolia, co-chief executive of XTX Markets, said French regulators had been “very receptive” to having an electronic market maker established in Paris. “It was important to select a location with a strong regulatory environment within which to operate,” he said. “We look forward to working with them to bring even more transparency and efficiency to markets across Europe.” (Financial Times, 29 October 2018, link)

 

Panasonic to move Europe headquarters from UK to Amsterdam. Panasonic will move its European headquarters from the UK to Amsterdam in October as Brexit approaches. Mr Abadie told the Nikkei Asian Review that Panasonic had been considering the move for 15 months, because of Brexit-related concerns such as access to free flow of goods and people. (BBC, 30 August 2018, link)

 

UBS has chosen Frankfurt as its post-Brexit EU base. Switzerland's largest bank, UBS, has chosen German financial hub Frankfurt as its new EU headquarters as it puts in place contingency plans for the possibility of a no deal Brexit, its CEO said on Monday. (UK Business Insider, 17 September 2018, link)

 

UK games industry: 40% of companies considering relocating after Brexit. Two fifths of games companies based in the UK are considering relocating out of the country in the wake of Brexit, a survey has found. Bossa Studios co-founder and CEO Henrique Olifiers said: “The damaging uncertainty caused by Brexit to our EU employees, and not having open access to the brightest and best European talent, some of whom are now refusing to resettle in the UK, is forcing us to have to assess whether it will be at all possible to produce our future games in this country.” (the Guardian, 30 Thursday 2018, link)

  

Smiffy’s to open new head office in Netherlands. The costume and fancy dress supplier has been headquartered in Gainsborough and Leeds for the past 120 years, yet Smiffy’s director, Elliot Peckett, announced it would open a new head office in the Netherlands as a result of Brexit. Smiffys have no choice but to protect our business by moving our headquarters to the EU. This will allow us to continue growing our trade to the EU, from within the single market,” said Peckett. (Independent,  20 Thursday 2016, link)

 

HSBC shifts European branches to French unit control ahead of Brexit. HSBC (HSBA.L) has shifted ownership of its Polish and Irish subsidiaries from its London-based entity to its French unit, and will do so for seven more European branches, as it prepares for Britain’s exit from the European Union. (Reuters, 12 November 2018, link)

 

Baillie Gifford picks Dublin to Brexit-proof its business. Baillie Gifford, one of the UK’s most successful asset managers, is to establish a Dublin offshoot to avoid being cut off from its growing number of European clients after the UK leaves the EU. Baillie Gifford has seen growing demand from clients from across Europe,” said Andrew Telfer, joint senior partner at the fund house. “We are committed to servicing our existing EU-based clients, as well as expanding further. We have been exploring various options to allow us to continue this development ahead of the UK’s planned exit from the EU.” (Financial Times, 3 August 2018, link)

 

MoneyGram to move EU offices out of London. Money transfer giant MoneyGram will move its European headquarters out of London to Brussels, putting hundreds of UK jobs at risk, as financial services chiefs attempted to sway the Government in favour of maintaining single market access after Brexit. once the UK is no longer part of the EU, it is anticipated the company will no longer be able to provide payments services outside the UK". (Telegraph, 11 January 2018, link)

 

European Banking Authority will move from London to Paris. The European Union will move its banking headquarters to Paris after Brexit. (Metro, 20 November 2017, link)

 

EasyJet to set up Austrian HQ to operate EU flights after Brexit. EasyJet is to open a new European headquarters in Austria to enable it to continue to operate flights within the EU after Brexit. The airline said it intended to establish a new airline, easyJet Europe, which would be headquartered in Vienna. (the Guardian,  14 July 2018, link)

 

Muji considers moving European HQ from London to Germany. Muji has become the latest company to consider moving its European headquarters out of the UK as Brexit negotiations continue. “no new location had been decided on”, but that it was “reviewing the risks from Brexit and always considering all available options.” (Independent, 4 September 2018, link)

 

Rex London to set up Dutch base. Taig Karanjia, chief operations officer of gifting business Rex London is creating a base on mainland Europe to minimise any disruption to his trade with EU nations post-Brexit. “As a result of Brexit, we’ve had to broaden out our options and we’ve set up a warehouse presence in Holland. We have warehouse space in Venlo” (Ready for Brexit, 31 July 2018, link)

 

MS Amlin gets green light for Brexit move. MS Amlin’s Brexit plans are now pushing through, after the global (re)insurer received approval to re-domicile Amlin Insurance SE (AISE) to Belgium. “I’m delighted the NBB have approved our application to re-domicile to Brussels, as this supports our strategic vision of placing AISE at the heart of the EU,” commented AISE chief executive Kim Hvirgel. “Brexit inevitably creates uncertainty for clients and brokers alike, but this move means MS Amlin will continue to be well placed to provide innovative solutions to our clients in the European Economic Area during the Brexit transition period and beyond.” (Insurance Business UK, 6 June 2018, link)