The government was today in urgent talks with Airbus after the aerospace company said it was on the verge of pulling investment from Britain over Theresa May’s stalled Brexit negotiations.

In a move described by one senior Tory MP as a “wake up call”, Airbus, which generates £1.7 billion in tax revenues, warned it is preparing to abandon plans to build aircraft wings at its British plants and move production to China, the US or elsewhere in Europe.

It is making a series of investment decisions this summer because of worries that EU safety certifications will not apply from March next year and uncertainty over customs checks.

“In the absence of any clarity, we have to assume the worst-case scenario,” Tom Williams, the chief operating…