Repairing Brexit economic damage should be Burnham's top priority, BCC chief says
Shevaun Haviland, director general of the British Chambers of Commerce, said repairing the economic damage of Brexit should be Andy Burnham's top priority, arguing the current UK-EU trading relationship is bad for business.
Repairing Brexit economic damage should be Burnham's top priority, BCC chief says
BCC chief: the deal is not working
Shevaun Haviland, who leads the British Chambers of Commerce, welcomed the prime minister reopening the Brexit debate even though it could create uncertainty, saying the current UK-EU trading relationship is bad for business. She argued the evidence shows the arrangement is failing firms.
"We do think it's right, because of what we know from the evidence of how businesses feel it's not working"
Haviland made the comments in an interview in Norwich alongside Nova Fairbanks, chief executive of the Norfolk Chambers of Commerce. A BCC survey found more than half of bosses questioned believed the deal negotiated under Boris Johnson and enacted in 2021 was not helping them. Haviland said trading with the EU had not got easier as companies adjusted to the new rules, contrary to what was expected.
The estimated cost of Brexit
The scale of the losses attributed to leaving the EU is substantial:
- Economists estimate Brexit has cost the UK economy up to £240bn so far, with national income per head 6% to 8% lower than if the UK had stayed in the EU.
- The Office for Budget Responsibility estimates a long-term hit of about 4% of GDP.
Burnham's position
At Labour's conference in Liverpool last month, Andy Burnham said Brexit had done more harm than good and pledged to reassess the UK's relationship with the EU. He opened the door to options including fully rejoining the bloc. This week he said failing to pursue a better deal with the EU would be a major dereliction of duty.
Haviland said Brexit language needs to move on ten years after the referendum, describing it as an economic question rather than a political one.
Demands on the budget
At this month's budget, Haviland wants chancellor John Healey to act boldly, even with worries over the public finances and bond markets in government. She said firms face growing pressure from rising energy prices and other effects of the war in the Middle East.
"Business don't really want just a 'steady as she goes'. They want to see some action"
She called for action on energy bills, business rates and taxes on employment to help firms recruit more young people. On energy, she said about 40% of an energy bill is actually energy, with the other 60% tax, and government could remove some of it. The big test for the chancellor, she said, is to put his money where his mouth is for business at the budget and show he believes the wealth creators are the job creators.
The BCC will consult its 50,000 members, who employ more than 6 million people across the UK, on options including rejoining the EU.
