A decade on from the seismic Brexit referendum result, the UK's economic and political landscape remains scarred by the decision to leave the European Union. The 52% to 48% vote in favour of exiting the EU in June 2016 sparked a maelstrom of change, with the nation formally departing the single market and customs union on January 1st, 2021. As the UK continues to navigate its post-Brexit trajectory, several high-profile symbols from the referendum campaign offer valuable insight into the complex reality that has emerged.
The Nissan factory in Sunderland stands as a potent example of this reality. Once touted as an emblem of British manufacturing prowess capable of thriving globally by Brexit supporters, it was also highlighted by 'Remain' advocates as a potential casualty of leaving the EU. Despite Sunderland voting 61% in favour of exiting the union, the automotive industry largely opposed Brexit due to concerns over jobs, trade, and costs. The UK government provided £161 million in state aid to Nissan – £61 million initially and an additional £101 million in late 2022 – to secure investment in new models.
However, car production at the Sunderland plant has declined significantly, falling from 507,000 vehicles in 2016 to 273,000 last year. While factors such as the pandemic and Ukraine war have undoubtedly played a role, Brexit's contribution to this decline, including new non-tariff barriers, is acknowledged. A recent deal with Chinese manufacturer Chery offers a lifeline, aiming to preserve existing jobs rather than create significant new ones.
The broader UK automotive sector has also felt the impact of Brexit. For instance, Chinese electric car manufacturer Xpeng is seeking to establish a European production base, potentially generating thousands of jobs. However, its Vice-Chair, Brian Gu, expressed a preference for focusing on the larger EU market, suggesting the UK may not be a primary candidate for such significant new investment. This highlights a critical implication for the UK's industrial strategy and its ability to attract large-scale foreign investment in key manufacturing sectors.
Another notable symbol from the referendum campaign was the 'Thames flotilla', which saw Brexit-supporting fishing crews, led by Nigel Farage, clash with counter-protesters headed by Bob Geldof. The fishing and aquaculture sector, though small, played a significant role in the 'Leave' campaign, with proponents arguing that exiting the EU's Common Fisheries Policy would allow Britain to regain control of its waters and negotiate its own catch quotas.
Despite this, the UK Government has maintained its commitment to supporting the British fishing industry post-Brexit, with Defra affirming its dedication to the sector. However, critics argue that the Government's policies have fallen short of expectations, citing concerns over the impact of Brexit on the industry and the need for greater support.
As the UK continues on its post-Brexit journey, these symbols offer a nuanced understanding of the complex challenges facing the nation. The legacy of the 2016 referendum result will undoubtedly continue to shape British politics and economy in the years to come.