Jason Moore02/11/2016 00:00
TW
1

One of the key claims during the referendum campaign was the high cost of Britain's membership. In fact, I would say that it was probably pivotal in the whole campaign, with many saying that this money could easily be spent on the National Health Service or on education. Well, Britain's exit could be even more costly than actual membership if the government continues to promise a compensation package if British exports are hit by EU tariffs post-Brexit.

Nissan has secured a good deal from the British government in return for its production of two new models at the highly successful plant in Sunderland. But others will want the same deal. The British government needed Nissan to stay because it was their first big Brexit manufacturing test.

The majority of car manufacturers in Britain are foreign-owned and could easily move elsewhere if they feel that Britain has become uncompetitive. The great British manufacturing revival, which was often underlined during the referendum campaign, depends very much on foreign companies. There is little point in making a major export drive of British cars in new markets such as India because as we all know Jaguar/Landrover is owned by an Indian company.

So, it is starting to become clear. Brexit could be a costly affair and British manufacturing could suffer rather than benefit.