Britain must follow Brussels rules on aerospace after Brexit to protect industry, says House of Commons committee

'We find that the competitiveness of UK aerospace could be adversely affected by any additional delays and bureaucracy encountered at the UK-EU border'

The Government has said it wants to remain part of the bloc's aviation regulatory regime (PA)

Britain must follow Brussels rules on aerospace after Brexit to protect the industry, a House of Commons committee has said.

Aligning, harmonising and participating in the European Union’s supply chains and its watchdog is the best way forward for the sector, according to MPs.

Crashing out of the bloc without a deal would be “highly costly and disruptive” for UK aerospace and aviation, the Business, Energy and Industrial Strategy Select Committee warned.

Customs checks for the industry, which has highly complex supply chains across Europe, must be kept to an absolute minimum, the committee said.

“We find that the competitiveness of UK aerospace could be adversely affected by any additional delays and bureaucracy encountered at the UK-EU border, given the prevalence of cross-border just-in-time supply chains in the sector,” its report said.

“The Government should seek to secure as near frictionless trade as possible between the UK and EU for the aerospace sector after Brexit, with the minimum amount of customs procedures.”

Around 114,000 people throughout the country are directly employed in the industry, with Airbus, Rolls-Royce, Bombardier, GKN and Leonardo Helicopters among the largest companies.

The Government has said it wants to remain part of the European Aviation Safety Agency (EASA) regulatory regime.

If that cannot be secured, transition arrangements lasting more than two years separate to the wider economic implementation period would need to be agreed, the committee said.

MPs warned a “no deal” exit from EASA would harm the industry in the UK and have “serious adverse impacts” in the EU and globally.

“The Government should now rule out leaving EASA to ensure the UK aerospace industry has the best possible chance of success post-Brexit,” the report said.

The committee called for the Government to “seek a deal” on immigration that allows the sector to continue to recruit the skilled workers it needs.

It also found there is “no trade-off” between close harmonisation with the EU and access to international markets in the industry after Brexit.

The Government must “reach a firm agreement” in the coming weeks transition arrangements to be clear about future relations between the UK and EU as soon as possible, the committee urged.

The Labour Party’s Rachel Reeves, who chairs the Business, Energy and Industrial Strategy Select Committee, said alignment, harmonisation and participation in EU rule is the best way forward.

She said: “The aerospace sector is one of the most productive and fastest growing in the UK, but this success is highly dependent on participation in European and global supply chains.

“The health of the industry relies on components moving quickly across borders with delays of even a few hours having a significant impact on costs. Given this, the Government must ensure custom procedures are kept to an absolute minimum after we leave the EU.

“In a truly global industry, membership of EASA gives the UK access to markets across the world through internationally recognised safety standards. Leaving would be completely counter-productive and leave the aerospace industry facing total chaos.

“The committee has now examined the impact of Brexit on three key sectors of the UK economy, the automotive and civil nuclear sector and now aerospace and the lessons are similar each time: the best way forward for jobs and businesses lies in alignment, harmonisation and participation in EU supply chains and regulatory bodies.”

PA