Jeremy Hunt says Airbus warnings over Brexit are ‘completely inappropriate’
Health Secretary Jeremy Hunt has said “threats” made by Airbus over pulling investment in the UK because of Brexit are “completely inappropriate”.
Last week, Airbus warned it could leave the UK in the event of a hard Brexit, putting around 14,000 jobs at risk.
The pan-European firm said it would consider moving out of the UK if there is no transition deal involving ongoing membership of the single market and customs union.
Speaking on The Andrew Marr Show, Hunt said the country was at a “critical moment” in the Brexit negotiations that demanded unity and for businesses to “get behind” Theresa May to deliver the “best possible Brexit”.
He warned: “The more that we undermine Theresa May the more likely we are to end up with a fudge, which would be an absolute disaster for everyone.”
Read more: Brexit: Airbus threatens to pull out of UK if no deal reached
Following the rebuke, the Institute of Directors (IoD) hit back at Hunt, saying businesses had “every right to speak up about their needs”, suggesting the decision had not been taken lightly.
“Firms think very carefully about sticking their heads about the parapet, so they should be listened to by politicians, not dismissed,” it said.
Liam Fox, the international trade secretary, also threw his weight behind May, telling Sophy Ridge on Sky News the government was serious about walking away with no deal if the EU offered a bad deal.
“We’re not kidding,” he said. “We would walk away rather than accept a bad deal.
“Our European partners would be foolish to think that because the prime minister is very considered and very pragmatic that she’s bluffing.”
Fox added that while he “sincerely hoped” the UK would get a good deal, saying it was in the best interests of the EU as well as the UK, the government would be prepared to walk away if the EU put politics before the “economic wellbeing” of the country.
The MPs’ warnings to businesses and the EU comes as the prime minister faces mounting pressure from both sides of the Brexit debate to make progress in the negotiations as the clock winds down towards the March leaving date.
In one letter, organised by the Economists for Free Trade (EFT) and seen by City A.M., pro-Brexit business leaders including Wetherspoon chairman Tim Martin call on May to take an “assertive” approach at a crunch EU Council meeting in Brussels, and to repeat her mantra that “no deal is better than a bad deal”.
“To have any real leverage in the Brexit endgame, the UK must reserve the right to walk away without a trade deal and take with it the £39bn it has offered to pay as part of a divorce settlement,” it said. “This money covering the final years of the EU budget settlement must be contingent on our securing a satisfactory free trade deal. No trade deal, no money.”
“In addition to the £39bn that the EU desperately needs to fill the hole in its budget, you have many things going for you. In spite of the doom-mongers, the UK economy is in rude health. The world is desperate for the UK to once again take up leadership for global free trade and free trade deals are on offer from our major trading partners.”
The letter coincides with a separate letter from pro-EU business groups following on from Airbus’s interjection.
The letter, addressed to May and the EU chief negotiator Michel Barnier, said “the clock is ticking increasingly loudly and the business community is deeply concerned that time is running out”.
“In recent days and weeks, an increasing number of companies have made clear that in the face of uncertainty, they are now actively considering moving substantial volumes of work away from the UK. We know that many more large businesses are close behind in their plans,” it warned.
Influential organisations including the British Chamber of Commerce, the EEF Manufacturers’ Association, the Federation of Small Businesses and the Institute of Directors were all signatories to the letter.
Read more: May caught in Brexit crossfire over lack of progress in negotiations