What is the effect of Brexit on the UK?/How has Brexit affected the UK economy?

14 Jul 2022 By PAYCEC

The UK auto industry suffered a 46 percent decline in 2017 and an 80 percent decline over a three-year period due to tariff uncertainty. Brexit played a significant part in the decline, even if it wasn't the only factor. British auto factories import parts from Europe and export the majority of their finished vehicles to the continent as well. The profitability of auto manufacturing facilities in the UK could be affected by automobile import levies.

The supply chain may be impacted by Brexit. Companies will need to retain extra inventory to prevent delays due to potential delays at the borders and increased restrictions for importing components. Nissan chose to produce a new car in Japan rather than Britain, while Honda has closed its manufacturing there. Both businesses, though, insisted that Brexit was not a factor in their choice.

The financial services sector has also been adversely affected. Brexit would put the UK's banks in a precarious position because of the numerous regulatory requirements for banks that the EU has established. For instance, UK banks could not be able to access the European market in the event of a hard leave. It was stated at the start of 2019 that banks and financial institutions have already moved assets worth $1 trillion from the UK to the EU.