LONDON—Britain’s aerospace industry has cautiously welcomed the appointment of new British Prime Minister Boris Johnson, but worries remain about the threat of a no-deal Brexit on Oct. 31.
The pro-Brexit Johnson took over from Theresa May on July 24 after being voted in as leader of the Conservative Party. In his first speech as prime minister, Johnson said it was “vital” for the country to “prepare for the remote possibility that Brussels [the European Union] refuses any further to negotiate and we are forced out with no-deal.”
During his leadership campaign, Johnson has repeatedly insisted that Britain would exit the European Union on Oct. 31.
“Brexit was a fundamental decision. We must respect that decision,” he said. “We are going to fulfill the repeated promises of Parliament to the people and come out of the EU on October 31, no ifs or buts.”
He said there would be “difficulties,” but with “energy and application, they will be far less serious.” Johnson also hinted that a post-Brexit budget would include a package to boost business.
Concern about the negative potential of a no-deal Brexit prompted companies to shell out hundreds of millions of pounds on buffer stocks and contingency plans to maintain supply continuity to customers in the run-up to the original Brexit deadline of March 29. A significant proportion of those costs were unrecoverable.
In a no-deal Brexit, the UK would exit the EU single market and customs union and revert to full trading independence under World Trade Organization rules. This would result in increased customs checks at British ports, potentially delaying the time-critical production outputs of aerospace manufacturers. It also could invalidate approvals, personal licenses and certifications issued by the UK Civil Aviation Authority and UK-approved organizations.
“The threat of a no-deal Brexit on October 31 is creating uncertainty for industry that is holding back growth and constraining investment,” said Paul Everitt, CEO of ADS, a UK aerospace, defense, security and space trade association.
“Businesses are looking to the government to act quickly to find a pragmatic way forward on Brexit that puts jobs, investment and prosperity first,” he added.
Johnson already has made significant changes to his cabinet, including the removal of Penny Mordaunt, the UK’s first female defense secretary, who assumed the position in May, taking over from Gavin Williamson. Also out is Transport Secretary Chris Grayling.
Mordaunt will be replaced by Ben Wallace, a member of Parliament.