BREXIT is being linked to the planned shock closure of Honda’s Swindon plant with the loss of some 3,500 jobs despite the company saying “global trends” are to blame.
The expected confirmation by the Japanese car giant today will provide a grim backdrop to Theresa May’s determined attempt this week to step up the negotiation process with Brussels on Britain’s EU withdrawal ahead of a key Commons vote next week.
As news emerged about the plant closure on Monday, Honda failed to give an official response. However, suspicions were quickly raised that Britain’s decision to leave the EU had a significant part to play.
Local MPs Justin Tomlinson and Robert Buckland expressed their "disappointment and surprise" by the news, which comes less than six months after Honda pledged its support for the plant.
A joint statement by the Conservative duo after a meeting with Greg Clark, the Business Secretary, and company bosses, said: "Honda have been very clear: this decision has been made because of the global trends and is not related to Brexit.
"Honda have told us today that they will be consulting with all staff and there is not expected to be any job losses or change in production until 2021," they stressed.
But one worker, who has been at the plant for 24 years, blamed the closure on Brexit, saying: “Perfectly viable car plant operating for 30 years, no problem at all; as soon as Brexit comes along the plant needs investment.
"People like Justin Tomlinson, our MP, campaigned for this Brexit. He wanted Brexit; he gets to carry the can. If he's not unseated by a massive majority at the next election, then this town gets what it deserves."
Labour MP Rachel Reeves, who chairs the Commons Business Committee, said the closure would be "devastating” for Swindon and the UK's car industry.
She added: "The threat of Brexit is already having a damaging impact on investment decisions in the UK. The PM now needs to rule out no-deal immediately and keep us in the single market and customs union rather than risk further fatal damage to our car industry."
Sir Vince Cable for the Liberal Democrats said the planned closure was “devastating news” for thousands of Honda workers and a “further hammer-blow” to Britain’s reputation as a hub for global business.
He claimed: “Brexit uncertainty is weighing on the company,” adding: "We can still step back from the cliff-edge and avoid economic disaster by giving the public the final say on Brexit with the option to stay in the EU.”
This week will see the UK Government make a concerted push to get a new deal with Brussels.
Stephen Barclay, the Brexit Secretary, met Michel Barnier, the EU’s chief negotiator, on Monday while the Prime Minister is due to meet Jean Claude Juncker, the European Commission President, later this week with Geoffrey Cox, the Attorney General, will give a speech setting out what changes would be required to eliminate the legal risk of being indefinitely trapped in the Irish backstop.
In another sign of increased Government activity, Mrs May spoke over the weekend to seven European leaders including Italy's Giuseppe Conte, following talks last week with 13 counterparts, including Germany's Angela Merkel and France's Emmanuel Macron.
The PM hopes to speak to the remaining EU leaders over the coming days.
Yet despite the intensive engagement, No 10 insiders acknowledged it was "hard to judge" what progress would be made this week.
It is thought Mrs May will need to produce something by the crunch Commons vote on Wednesday week to avoid losing a raft of Cabinet ministers worried about the prospect of a no-deal outcome. One Cabinet member described the upcoming vote as the “moment of truth”.
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