UK miners halved EU funding, but saw a rocket of profits after a referendum

... Credit : @pixabay
Shadrach   in Alternatives

Last updated: 18 February 2020, 04:26 GMT

The UK mining sector has halved its overall investment position in the EU since the brexit referendum, but profits have risen by more than GBP 2 billion at that time, according to an examination of the new ONS data by R&D tax relief specialist Catax.

In 2015, the year before the Brexit referendum, UK mining and quarrying companies had invested £ 34.4 billion in the EU, but this dropped to £ 16 billion in 2018–a 53.5 per cent drop. Nevertheless, earnings from UK investment in the EU jumped from negative £ 91 m in 2015 to positive £ 2.1bn in 2018 in the same era.

The data suggests UK miners in the wake of the referendum have made a series of wise investment moves. Meanwhile, EU investment levels in the UK mining sector decreased from £ 52.5 billion in 2015 to £ 35.2 billion in 2018–a 33 percent reduction. This compares favorably with sectors such as UK utilities that have quadru-pledged their investment position in the EU but only a quarter (23 percent) of earnings increased.

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Mark Tighe, Chief Executive Officer of R&D tax relief specialists Catax, said: "We've heard horror stories over the last few years about what would happen to the UK after the vote to leave the EU. Apparently the mining industry has made some difficult decisions about the future, with investment positions on both sides of the Channel being wound up.

But for UK firms these sensible decisions have clearly paid off, with mining and quarrying firms enjoying a boom in earnings, emerging this side of Brexit in stronger position. The mining sector’s earnings have gone from being £91 million within the red, to a whopping £2 billion within the black since the Brexit vote. this is often more excellent news for British industry because the country starts to line its own course on the journey to become a replacement outward-looking nation outside the EU.

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