Nearly 75,000 jobs could be created in the South West if the UK stays in the European Union, the CBI has claimed in one of the last pro-EU salvos by a major business group ahead of tomorrow’s vote.
The CBI, a staunch backer of the ‘remain’ camp during the referendum campaign, said official Treasury figures showed deepening economic ties with EU member states had the potential to create 74,340 jobs.
That compared, it claimed, with a likely “economic shock” if the UK left which would “pull the rug from under the local economy”. 
The CBI said the UK’s membership of the European Union had helped boost job creation and growth in the South West for more than 40 years, with as many as 250,000 jobs in the region linked to exports to the Single Market.
Most major businesses in the region, especially foreign-owned companies or those trading in Europe, have come out if favour of remaining in the EU – including BMW, which has its main pressing and sub-assembly plant for the Mini in Swindon.
The UK car industry – probably the most vital sector for Swindon – has warned that leaving the EU would jeopardise the success of the sector.
According to industry body the SMMT, the industry supports 800,000 jobs across the UK and contributes £15.5bn annually to the economy. Around 80% of UK-built vehicles are sold abroad with 57.5% of these destined for the rest of the EU.
SMMT chief executive Mike Hawes said: “UK Automotive is globally competitive, securing record levels of investment, creating tens of thousands of jobs annually and exporting to over 100 countries.
“We want this success to continue rather than jeopardise it by increasing costs, making our trading relationships uncertain and creating new barriers to our single biggest and most important market, Europe. Remaining will allow the UK to retain the influence on which the unique and successful UK automotive sector depends.
“There should be no ambiguity about the sector’s views ahead of such a critical vote. Senior figures from a wide range of UK-based automotive companies have reinforced this message.”
Honda exports around 90% of all cars made at its massive Swindon plant to the European market and also buys many of the parts for its range from European suppliers.
However, one notable South West business owner – and probably the richest – billionaire inventor Sir James Dyson has backed Brexit. The bagless vacuum cleaner pioneer – who employs around 2,000 people at Dyson’s plant at Malmesbury – claims British business would be better off outside the EU and has dismissed claims that Europe would stop trading with the UK.
According to the CBI, several of the region’s key sectors depend on the Single Market. It claims:
- 83,960 South West manufacturing jobs are linked to UK exports to EU countries. Remaining in the EU and extending the Single Market could create an additional 10,310 manufacturing jobs in the region
- 30,080 jobs in wholesale and retail trade are boosted by trade with the Single Market. Some 10,610 jobs could be added to the South West’s distribution and retail sector by staying in, and strengthening, the Single Market
- 12,120 jobs in banking and business sectors could also be created in the South West through strengthening the Single Market.
CBI South West director Deborah Waddell, pictured, said: “The UK’s membership of the European Union has been of enormous benefit to the South West for over 40 years. Some of the key sectors that lie at the heart of communities across the region, from manufacturing to retail, rely on our membership of the Single Market.
“Virtually every economist agrees that leaving the EU would likely cause an economic shock, damaging the South West’s prospects. We’d not only put a dent in what we have now, we’d also miss out on thousands of jobs in the near future, as a result of losing access to the Single Market, pulling the rug from under our local economy.
“This is why the majority of businesses want the UK to remain inside the EU, to best drive growth, support and create jobs, and increase prosperity for our region.”
