New figures released today [Wednesday] show that a majority of
business leaders (51%) want to keep in step with the rules of the
Single Market for goods and services after the UK leaves the EU,
in order to preserve maximum access. By contrast, 21% of members
prioritise changes to domestic regulations, even if it reduces
access. The Institute of Directors, which received responses from
over 900 members in an October survey, said
this was a clear steer to the Government to prioritise a final
deal with the EU that minimises regulatory barriers to trade.
Uncertainty over the shape of the UK’s future relationship with
the EU means that just under half (46%) of IoD members currently
feel unable to plan for Brexit. This figure varies by sector,
with directors in manufacturing less likely to say they can plan
now (44%), compared to directors in finance (57%). In total, 61%
of firms anticipated they would be preparing for different Brexit
scenarios, although fewer than one in ten (8%) said they had
triggered contingency plans, such as moving operations. Overall,
around one in five (22%) thought they might have to move some
operations to the EU.
Putting long-term planning to one side, the most pressing concern
for businesses is guaranteeing the rights of EU citizens living
in the UK, and UK citizens in the EU. This is one of the issues
being negotiated in the first phase of the Brexit talks, and the
IoD is calling for a swift resolution to provide reassurance for
companies and their staff. Other pressing priorities for SMEs
include avoiding tariffs and securing urgent agreement on
transition.
These results will be presented at the Treasury Committee
evidence session on the UK’s economic relationship with
the EU today [Wednesday] at 10am by Allie
Renison. The full survey and analysis can be found
in The business end of
Brexit briefing document.
Allie Renison, Head of EU and Trade Policy at the Institute of
Directors, said:
“British companies have huge potential to grow their exports and
seize opportunities in new markets across the world, but a smooth
Brexit is essential to paving the way towards this goal.
“IoD members are clear that they want the UK to cooperate closely
with the EU after Brexit to make sure they have the most access
they can get to the Single Market. We will be outside of the EU,
and not bound by its laws, but to make sure goods and services
can flow as freely as possible, businesses think we should keep
our regulations closely aligned in these areas. The Government
will have to decide what the UK’s post-Brexit trade strategy is,
and which trade deals we will pursue across the world, but
companies are calling for the Government to balance this new
freedom with the need to hold on to our biggest market.
“Just as important as the final deal are the stages we go through
to get there. Businesses urgently want the UK and the EU to
announce they’ve reached an agreement on citizens’ rights, which
has been close but just out of reach during the previous rounds
of talks. A quick agreement on a transition deal is also a high
priority, preventing companies from having to take premature
decisions on relocating operations.”
