So whats it for? it goes red when ignition is turned on and is lit for about 5 sec.
I dont have a user manual for the car and this is my first ford so I have no idea.

And I also have a fuel gauge that never turns off, some ideas what the problem can be?

 

My only guess is reliant upon the theory that your Escort is a diesel. In which case the LED indicator might be the glow-plug ready light.

 

Thanks for your answer, but nope its not diesel.
Could it be a larm indicator? just a thought because its red and for its central location.

 

Solved it.

It is a alarm indicator, combined with the indicator for the coded key.