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<p>On 28th November 2018, the Government laid before Parliament the document entitled,
“EU Exit: Long-term economic analysis” which was intended to facilitate parliamentary
scrutiny ahead of the Meaningful Vote on the final deal. The purpose of this analysis
was to illustrate high level impacts on the UK from different EU Exit scenarios. It
included associated costs for five broad sector groups across the economy, including
manufactured goods, which together cover the majority of the UK economy and all traded
goods and services.</p><p>We understand the impact that continued uncertainty has
on firms and the disruption in the event of no deal and continue to discuss the situation
with manufacturers and industry bodies, including Make UK. We are also aware that
factories are stockpiling essential parts to try to minimise disruption in a no deal
scenario, and we acknowledge that this has an impact on costs. The best way to deliver
the certainty that our manufacturers need is to agree a deal that delivers on our
commitment to leaving the European Union.</p><p>The Government is committed to leaving
the European Union in a way that underpins prosperity and avoids unnecessary disruption
for people and businesses across the UK and therefore has been preparing to minimise
any disruption in the event of no deal. Since the extension was agreed, departments
have advanced their no deal preparations so that we are ready to implement necessary
work in the lead-up to 31 October if needed.</p><p>HMRC has written three times to
over 145,000 VAT-registered UK businesses who currently trade only with the EU, setting
out the actions they need to take, and the changes they need to be prepared for in
the event of no deal.</p><p>We have advised hundreds of ports, traders, pharmaceutical
firms and other organisations that use the borders about potential disruption, so
that they can engage proactively with their supply chains. We have published a leaflet
for SMEs, that contains advice on actions to take, provides sources of support, and
outlines the changes that may affect businesses when the UK leaves the EU.</p><p>The
Government recognises that the manufacturing sector remains a vital contributor to
the economy of the UK, driving innovation, exports, job creation, and productivity
growth and we are committed to supporting the sector as the UK exits Europe. Through
our modern Industrial Strategy and Made Smarter – our key national industrial digitalisation
programme – we are building an economy fit for the future. As the 9th largest global
manufacturing economy, we are, and will continue to be, a major manufacturing nation.</p>
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