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| What do business leaders think of Theresa May's Brexit speech? | What do business leaders think of Theresa May's Brexit speech? |
| (about 2 hours later) | |
| Theresa May has said that Britain will leave the single market as part of its exit from the European Union but that the country would push for the “greatest possible” access to tariff-free trade with Europe as part of a deal. | Theresa May has said that Britain will leave the single market as part of its exit from the European Union but that the country would push for the “greatest possible” access to tariff-free trade with Europe as part of a deal. |
| The comments from the prime minister – who also said there would be a phased implementation of the new agreement between Britain and Europe – bring clarity about the shape of the country’s exit from the European Union but will also spark fresh concerns. This is how the major business representatives have reacted. | The comments from the prime minister – who also said there would be a phased implementation of the new agreement between Britain and Europe – bring clarity about the shape of the country’s exit from the European Union but will also spark fresh concerns. This is how the major business representatives have reacted. |
| CBI | |
| Britain’s largest business group, which supported the country remaining in the European Union, said Theresa May’s speech had “changed the landscape”. | |
| Carolyn Fairbairn, director-general of the CBI, said: “Ruling out membership of the single market has reduced options for maintaining a barrier-free trading relationship between the UK and the EU. But businesses will welcome the greater clarity and the ambition to create a more prosperous, open and global Britain, with the freest possible trade between the UK and the EU. | |
| “The pressure is now on to deliver these objectives and achieve a smooth and orderly exit. Businesses want to make a success of Brexit but will be concerned about falling back on damaging WTO rules.” | |
| British Chambers of Commerce | British Chambers of Commerce |
| Adam Marshall, the director general of the BCC, warned that what “really matters” to businesses is what May secures from the negotiations with the EU, not what she bids for. | Adam Marshall, the director general of the BCC, warned that what “really matters” to businesses is what May secures from the negotiations with the EU, not what she bids for. |
| He said: “While businesses now have a clearer sense of the prime minister’s top-line priorities, they will come away from her speech knowing little more about the likely outcome of the Brexit negotiations than they did yesterday. The simple fact is that businesses all across the UK are carrying on. Directly affected companies are being pragmatic, and are preparing for a range of possible outcomes.” | He said: “While businesses now have a clearer sense of the prime minister’s top-line priorities, they will come away from her speech knowing little more about the likely outcome of the Brexit negotiations than they did yesterday. The simple fact is that businesses all across the UK are carrying on. Directly affected companies are being pragmatic, and are preparing for a range of possible outcomes.” |
| Marshall said it was vital that Brexit “must not become all-consuming” and urged the government to focus on “having the right skills, infrastructure and business environment across the UK”. | Marshall said it was vital that Brexit “must not become all-consuming” and urged the government to focus on “having the right skills, infrastructure and business environment across the UK”. |
| Chartered Management Institute | Chartered Management Institute |
| The prime minister’s speech makes it “inevitable” that the number of foreign workers coming to the UK will fall, according to Ann Francke, the chief executive of the CMI. | The prime minister’s speech makes it “inevitable” that the number of foreign workers coming to the UK will fall, according to Ann Francke, the chief executive of the CMI. |
| She said: “With the prime minister signalling today that the UK will make a clean break from the EU, it is inevitable that the number of foreign workers coming to the UK will fall after Brexit, so we need to invest heavily in homegrown talent now to ensure that we have the skilled workers capable of plugging the gaps.” | She said: “With the prime minister signalling today that the UK will make a clean break from the EU, it is inevitable that the number of foreign workers coming to the UK will fall after Brexit, so we need to invest heavily in homegrown talent now to ensure that we have the skilled workers capable of plugging the gaps.” |
| Society of Motor Manufacturers and Traders | |
| Car manufacturers believe that May’s comments about the importance of single market arrangements for the industry is “critical”. Carmakers have previously warned they could pull operations out of Britain without a free-trade arrangement with the rest of Europe, although Nissan lsat year pledged to expand its operations in Sunderland. | |
| Mike Hawes, chief executive of the SMMT, said: “We need government to deliver a deal which includes participation in the customs union to help safeguard EU trade, trade that is tariff-free and avoids the non-tariff and regulatory barriers that would jeopardise investment, growth and consumer choice. Achieving this will not be easy and we must, at all costs, avoid a cliff-edge and reversion to WTO tariffs, which would threaten the viability of the industry.” | |
| BBA | |
| The banking industry welcomed the “important clarity” and “commitment to free trade” in May’s speech. | |
| Anthony Browne, chief executive of the BBA said: “The prime minister has provided important clarity today on the kind of relationship the UK will seek with the EU and we welcome the government’s commitment to free trade with the EU and the rest of the world. | |
| “All existing EU member states have a mutual interest in ensuring that there’s a smooth exit. The government’s support for interim arrangements is essential to ensure there are no cliff-edge effects when the UK leaves the EU. | |
| “We will continue to work with government and regulators to support its negotiation strategy to agree a new partnership with the EU.” | |
| TheCityUK | |
| The trade body for Britain’s financial services industry praised the prime minister for highlighting the need for a “bespoke agreement” between Britain and the EU. | |
| In comments that could soothe fears that financial services firms will leave the City of London, Miles Celic, chief executive of TheCityUK, said: “There is no existing off-the-shelf solution which can deliver the right deal for the UK, the EU and the global economy. The UK-based financial and related professional services industry has consistently called for an ambitious deal with mutual market access between the UK and the EU on terms similar to those currently in place. The prime minister’s intention to see that the UK gets the highest possible access to EU markets supports this objective. Her focus on global Britain realises the potential presented by next generation international trade and investment agreements. | |
| “The prime minister recognised the important role the UK plays as Europe’s financial centre. Her assertion that the industry must be able to provide its services cross-border post-Brexit will benefit firms and customers in the UK and the EU. | |
| “The prime minister’s commitment to ensuring the UK will be able to continue to attract the best domestic, EU and global talent is welcome. Global businesses must be able to continue to move their staff or operations into the UK to ensure it maintains its global attractiveness into the future.” | |
| NFU | NFU |
| Farmers still have “legitimate and important concerns” about Brexit despite May bringing some much-needed clarity about the negotiations with the EU, the NFU has warned. The agriculture industry exports 72% of its products to the EU, with £290m out of the £300m annual lamb exports being sold to Europe. The NFU, which is seeking urgent talks with the government, said it was vital that Britain has the best possible access to trade with Europe and access to a “competent and reliable workforce”. It also wants the government to confirm that it sees agriculture as a key industry and ensure that there is a period of transition if there are changes to the trading relationship. | Farmers still have “legitimate and important concerns” about Brexit despite May bringing some much-needed clarity about the negotiations with the EU, the NFU has warned. The agriculture industry exports 72% of its products to the EU, with £290m out of the £300m annual lamb exports being sold to Europe. The NFU, which is seeking urgent talks with the government, said it was vital that Britain has the best possible access to trade with Europe and access to a “competent and reliable workforce”. It also wants the government to confirm that it sees agriculture as a key industry and ensure that there is a period of transition if there are changes to the trading relationship. |
| The NFU added: “The prime minister has ruled out the UK’s continuing participation in the European single market or the EU customs union and instead has stated her intention to pursue a free trade agreement with the EU. We hope the prime minister’s ambition can be achieved, but as we know these kind of deals normally take years to conclude and do not cover all products.” | The NFU added: “The prime minister has ruled out the UK’s continuing participation in the European single market or the EU customs union and instead has stated her intention to pursue a free trade agreement with the EU. We hope the prime minister’s ambition can be achieved, but as we know these kind of deals normally take years to conclude and do not cover all products.” |
| Federation of Small Businesses | Federation of Small Businesses |
| Mike Cherry, the national chairman of the FSB, said small businesses wanted a “bold and ambitious” free trade agreement with the EU and that it was vital the prime minister met her pledge to have a period of transition to the new arrangement, thereby avoiding a “cliff-edge”. | Mike Cherry, the national chairman of the FSB, said small businesses wanted a “bold and ambitious” free trade agreement with the EU and that it was vital the prime minister met her pledge to have a period of transition to the new arrangement, thereby avoiding a “cliff-edge”. |
| He said: “One in five FSB members export. This could be doubled with the right tailored small business support from the Department for International Trade along with new free trade agreements with the fastest growing markets in the world. Global trade will only flourish if the free trade agreements prevent additional barriers, such as cost and paperwork. | He said: “One in five FSB members export. This could be doubled with the right tailored small business support from the Department for International Trade along with new free trade agreements with the fastest growing markets in the world. Global trade will only flourish if the free trade agreements prevent additional barriers, such as cost and paperwork. |
| “Small employers will welcome the pledge to maintain the UK as a true magnet for international talent. We have pressed the government hard to guarantee the right to remain for non-UK EU nationals in existing workforces, and no early cut-off date. Any future system must help small firms to easily recruit the right person, for the right job, at the right time.” | “Small employers will welcome the pledge to maintain the UK as a true magnet for international talent. We have pressed the government hard to guarantee the right to remain for non-UK EU nationals in existing workforces, and no early cut-off date. Any future system must help small firms to easily recruit the right person, for the right job, at the right time.” |
| Institute of Directors | Institute of Directors |
| Some business leaders will “regret” the prime minister’s pledge to leave the single market, according to the Institute of Directors, which welcomed the “level of detail” provided in May’s speech. | Some business leaders will “regret” the prime minister’s pledge to leave the single market, according to the Institute of Directors, which welcomed the “level of detail” provided in May’s speech. |
| Allie Renison, the head of Europe and trade policy at the IoD, said: “Whatever the shape of the final trade deal, a smooth and orderly departure is in the whole country’s interests, so businesses will support the commitment to a phased process of implementation. While we do not expect a running commentary, firms hope to get periodic updates to maintain confidence as we make our way towards the exit. | Allie Renison, the head of Europe and trade policy at the IoD, said: “Whatever the shape of the final trade deal, a smooth and orderly departure is in the whole country’s interests, so businesses will support the commitment to a phased process of implementation. While we do not expect a running commentary, firms hope to get periodic updates to maintain confidence as we make our way towards the exit. |
| “We now know that we will be leaving the single market, and while there will be firms who regret this, they will at least be able to plan on that basis. Business leaders will be heartened by the prime minister’s strong argument for the value of free trade, an argument currently being made by all too few global leaders. | “We now know that we will be leaving the single market, and while there will be firms who regret this, they will at least be able to plan on that basis. Business leaders will be heartened by the prime minister’s strong argument for the value of free trade, an argument currently being made by all too few global leaders. |
| “From the point of view of business, getting a broad-ranging free trade deal would be preferable to falling back on World Trade Organisation rules. | “From the point of view of business, getting a broad-ranging free trade deal would be preferable to falling back on World Trade Organisation rules. |
| “We would urge the EU to match the government’s approach in taking a long-term, big-picture view about the need for cooperation and partnership in future.” | “We would urge the EU to match the government’s approach in taking a long-term, big-picture view about the need for cooperation and partnership in future.” |
| British Retail Consortium | |
| May must ensure that a new deal with the EU does not lead to higher shop prices for consumers, according to leading retailers. | |
| Helen Dickinson, chief executive of the BRC, said: “The prime minister has an ambitious plan with the right priorities. It is crucial that Britain gets a new deal that works for ordinary British consumers, which doesn’t hit them with the costs of new import tariffs at a time when the pound is already weakened. The government has an opportunity to secure a win-win deal that works for the UK economy, by keeping prices down for consumers while allowing the EU to continue benefiting from its open-trade relationship with the UK.” |