Britain’s car industry has given the Government a “Brexit reality check”, saying worries about the UK crashing out of the EU are costing jobs.

One in three automotive businesses are cutting jobs because of Brexit fears, up from one in eight a year ago, according to new research by the car industry’s trade body.

The Society of Motor Manufacturers & Traders (SMMT) also found that a no-deal Brexit means four out of five businesses in the sector are concerned about their prospects.

Released ahead of the October 31 Brexit deadline, the research also revealed 13pc of UK automotive firms are relocating operations overseas.

If a trade deal is not agreed then car makers – who operate on thin margins – face the prospect of 10pc tariffs on vehicles built here but sold abroad.

Some 80pc of the 1.5 million cars built in Britain annually are exported, mostly to the EU.