UK mining and quarrying industry earnings have increased by more than £2bn since the UK voted to leave the EU in June 2016, according to analysis of the latest Office for National Statistics (ONS) data by R&D tax relief specialist Catax.
Over the same period, the industry more than halved its overall investment positions in the EU British investment in EU companies fell from £34.4bn in 2015 to £16bn in 2018, a 53.5% decrease. However, earnings rose from negative £91m in 2015 to positive £2.1bn in 2018.
Catax CEO Mark Tighe said: “The mining industry has clearly made some hard decisions about the future, with investment positions being wound down on both sides of the Channel.
“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.
“This is more good news for British industry as the country starts to set its own course on the journey to become a new outward-looking nation outside the EU.”
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The EU referendum caused years of fluctuations in the value of the pound due to uncertainty over Britain’s future relationship with its largest trade partner.
Since the referendum, EU investment in the UK mining sector decreased by a third from £52.5bn in 2015 to £35.2bn in 2017.
The UK mining sector has fared considerably better than other sectors including utilities, which has increased its investments in the EU by 400% but seen earnings increase by just 23%.