Yesterday, following evidence sessions of the Treasury Select Committee and the Exiting the European Union Committee that each covered the topic of the UK’s future customs arrangements after Brexit, ADS Chief Executive Paul Everitt has written to the Chairs of the two committees to update them on our estimates of potential costs to our four sectors.
Our latest assessment suggests that the government’s maximum facilitation option would potentially impose a new cost burden on the aerospace, defence, security and space sectors of up to a combined £2.3 billion after Brexit, up from our previous estimate of £1.5 billion last autumn.
Our updated cost assessment has risen from last year’s estimate due to the increase in the value of exports to the EU in our four sectors in 2017. This reflects global growth and the critical role UK companies play in highly integrated European supply chains.
It is ADS’s view that a customs union combined with a high level of regulatory alignment between the UK and EU is necessary to minimise new costs, maintain industrial competitiveness, and protect the high value jobs our sectors provide.Fullscreen Mode