Brexit will damage UK aerospace industry

Subject

The impact of Brexit on the UK aerospace industry.

Significance

The UK aerospace industry's competitiveness and growth potential will depend on the United Kingdom's future relationship with the EU. Key questions include the free movement of people, involvement in research and development (R&D) programmes, trade agreements and membership of the European Aviation Safety Agency (EASA).

Impacts

• The contraction of the economy due to Brexit could reduce public spending in the defence sector, affecting aerospace companies.
• A drop in the value of the pound and the downturn in the economy may reduce consumer demand for air travel.
• UK military resources, including the independent nuclear deterrent, may be an asset in negotiations with European leaders.
• The Aerospace Technology Institute's relationships with countries such as Germany and Sweden will be beneficial in case of a 'hard' Brexit.