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Stakeholders from the construction and aerospace industries have also joined automakers in calling for better post-Brexit rules to protect their businesses.
Rishi Sunak said the UK is consulting with the European Union over concerns raised by Jaguar Land Rover (JLR), Sterantis and Ford about the looming deadline for ‘rule of origin’ regulation over electric vehicles. rice field.
JLR, which employs about 30,000 people, said the rule was “unrealistic and counterproductive” and could lead to job losses.
Other industry leaders have also issued warnings about aspects of the Brexit Trade Cooperation Agreement (TCA) agreed between Boris Johnson and the EU in December 2020.
UK aviation licenses are no longer recognized in the EU due to failed negotiations on the UK’s continued membership of the European Aviation Safety Authority (ESAE), and separate authorization is required for European maintenance companies to work for UK registered airlines became.
Amy Stone, chief economist at ADS Group, a trade group for the aerospace, security, defense and space industries, said the failure hampered the aviation industry’s post-pandemic recovery.
“Since early 2022, aircraft orders have been strong as flight numbers return to pre-pandemic levels and as a result demand in the aerospace market recovers,” she said.
“[But] ADS expects aerospace manufacturing not to reach pre-pandemic trends until at least 2024. ”
The UK is also yet to reach an agreement to rejoin its scientists in Horizon Europe, a €95 billion research and innovation programme.
London officials accused the Brussels government of asking Britain to pay large sums to rejoin the scheme.
Ms Stone added: “We believe the UK and EU need to work together to resolve outstanding issues, such as EASA’s approval of the UK’s maintenance authorization and the UK’s accession to Horizon Europe. We continue to emphasize that,” he added.
In the construction industry, developers have been hit hard by the COVID-19 pandemic and soaring energy prices. But Tim Heatley, co-founder of Manchester-based Capital&Centricm, said Brexit was also a “big factor”.
he said I: “At first glance, the construction industry is not as dangerous as car manufacturing. You cannot outsource the construction of new homes to Asia.
“But I would argue that if we can’t control the situation, we face an even greater economic impact.
“Both construction materials and labor costs are much higher here than in EU countries, so Brexit must be a big factor.”
A report released earlier this year found that between 2015 and 2022, the cost of building materials such as cement, timber and steel rose by 35% in the EU compared to 60% in the UK. .
The industry has repeatedly called for less red tape to cut costs, and last year the government agreed to postpone the introduction of a new ‘UKCA’ safety mark to replace the EU system.
A joint study by the Center for European Reform (CER), a think tank, and the United Kingdom in Changing Europe, shows that the TCA has led to a labor shortage of 330,000 workers in the UK, mostly in low-skilled sectors.
Construction workers now need to apply for visas and may need sponsorship from their employers before they can start work in the UK.
Heatley warned that inflation was also “hitting costs” and that “some of the planned housing, work and neighborhoods in the UK present major feasibility challenges”.
He added: “What the industry needs now is a focus on supporting the rapid movement of materials from the EU to the UK. work on