Honda has insisted that Brexit did not influence its decision to close its Swindon factory as the car maker confirmed that it will axe 3,500 jobs in the UK.

Honda bosses said that the decision to close the Swindon plant in 2021 was part of a global restructuring aimed at tapping the electric car market. The decision is "not a Brexit-related issue for us", said Ian Howells, Honda's senior vice president for Europe.

However, business secretary Greg Clark admitted that the Brexit uncertainty facing manufacturers is "unacceptable", calling mounting concerns within the sector "project reality".

"Decisions like Honda's this morning shows starkly how much is at stake," he warned.

Mr Clark added that "countless conversations" with "virtually every firm in the automotive sector" have indicated that the uncertainty has had a negative impact.

The closure is another huge blow for the UK's automotive industry ahead of Brexit, coming just days after Nissan said it would not produce the new X-Trail model at its Sunderland factory.

The Swindon plant made around 160,000 vehicles last year, a 10th of the UK's total car production. The Society of Motor Manufacturers and Traders (SMMT), the car industry's trade body, warned that Honda's Swindon factory supports a further 10,000 jobs that will be affected by the closure.

Honda's decision to close its only plant in the UK comes just months after a huge free trade deal between the EU and Japan was sealed.

The 10pc tariff on car exports from Japan heading into the EU will be phased out entirely within the next 7 years, meaning Honda will soon enjoy unrestricted access to the bloc without needing to locate operations there. The vast majority of the cars made in Swindon were exported to Europe.

Honda confirmed that it will keep its European headquarters in the UK.