Business groups lobby for access to the single market in Brexit talks
Business groups are to meet with the business secretary on Tuesday to lobby for assurances in Brexit negotiations to secure Britain’s industrial future and to avoid economic limbo.
Business secretary Sajid Javid will hold a meeting to discuss the Brexit result with heads from the Confederation of British Industry (CBI), the British Chambers of Commerce, the Federation of Small Business and EEF, the manufacturers association.
EEF has raised concerns about the government’s commitment to securing access to the single market and protecting the UK’s trading relationships. It said it also wants the government to send a message of ‘business as usual’ to Europe and the rest of the world.
In a statement, the EEF said it will ask ministers to avoid allowing businesses in the UK to fall into a limbo and they should continue making investment decisions such as expanding airport capacity.
EEF chief Terry Scuoler said that the government would have the manufactures’ backing in waiting for a defined negotiation position before triggering Article 50.
Article 50 of the Lisbon Treaty sets how how a country might leave the EU by notifying the European council, negotiate a deal on withdrawal and establish legal grounds for a future relationship with European Union (EU).
Scuoler said: “In the immediate aftermath of the vote, it must continue to tread carefully by not triggering Article 50 immediately, reassuring the markets and seeking to shore up business confidence. The next step is clearly for close engagement with business groups and other stakeholders to ensure that emerging signs of manufacturing recovery do not falter in the coming months and to deliver broad agreement on a clear vision for a new relationship between the UK and the EU.
“It is vital that government takes immediate steps to keep manufacturing growth on track – I will be using this meeting to set out the sector’s top priorities in forging a new relationship with partners in the EU … we must bear in mind the warnings of international organisations that the UK’s manufacturing sector was on the ‘at risk’ list in the event of Brexit.”
For manufactures, Scouler said, the key priorities are maintaining tariff free access to the EU market for goods and services, ensuring regulatory stability, and to address the skills gap in the UK. He said a focus on increasing investment, innovation and productivity across the industrial sector must take precedence over deficit reduction.
In a letter to The Times on Monday, CBI director general Carolyn Fairburn said there needs to be decisive leadership in Brexit negotiations, and that she also welcomes the delay in triggering Article 50.
Fairburn said the government needs to protect tariff and barrier free-access to the single market of 500m consumers and for the government and business to collaborate to shape the country's economic future.
“The Secretary of State for Business, Saajid Javid, has communicated his intent to start this planning process with business and community leaders across the UK. We welcome this.
“There is one other action that needs to be taken immediately. The government should remove uncertainties over the long term right to stay in the UK for those already working here as soon as possible. We welcome the steps the new Mayor of London, Sadiq Khan, has taken to give this reassurance.”
Javid told the BBC’s Andrew Marr Show on Sunday: “Now it's a time for reassurance for business, and my message to them ever since Friday morning is there's no need to be panicking at all. We have to have a calm approach, which is what we've seen since then.”