BUSINESSNEWS
UK needs ‘ whole economy ’ approach to make a success of Brexit
The UK ’ s new relationship with the European Union ( EU ) must meet the needs of every sector of the economy to be a success , as the consequences of leaving any behind could have knock-on effects for others , says the CBI . This follows its largest consultation of members since before the EU referendum .
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THE CBI HAS HELD THOUSANDS OF conversations across the country with trade associations and firms of all sizes since the summer and taken an in-depth look at the opportunities , concerns and questions that 18 sectors of the UK economy face ahead of EU negotiations in 2017 - on the ease of doing business , regulation , and access to talent .
In Making a Success of Brexit , the CBI calls on the Government to consider the complexity of the modern economy where no business operates in isolation . Products come with complementary services , supply chains overlap across borders , and many companies do not fit neatly into a single sector .
Carolyn Fairbairn , CBI Director-General , said : “ Businesses in every corner of the UK are rolling up their sleeves as they prepare for life outside the EU and are committed to making it a success .
“ Leaving the EU will be a highly complex process , and all sectors of the economy are making their priorities clear in order to get it right .
“ The Government will need to take a ‘ whole economy ’ approach to avoid leaving sectors behind .”
The CBI ’ s consultation reveals that many questions are shared by businesses across sectors .
• Airlines – and the wider aviation sector , which employs nearly one million people - are asking how the Government will seek agreements that allow the smooth transport of holiday-makers , workers and goods , as are logistics companies , haulage firms and retailers
• Restaurants are asking how they will continue to hire chefs from abroad , while companies in the chemicals and plastics sector - which export towards £ 30bn worth of products each year - are asking whether they will still be able to access the skilled employees they need at their
‘ businesses in every corner of the UK are rolling up their sleeves as they prepare for life outside the EU ’
plants . This is also an issue for logistics firms who already face a shortfall of nearly 35,000 HGV drivers
• Construction companies – which will build the UK ’ s new homes , roads and rail in a sector worth over £ 100bn to the UK economy - are asking about the potential costs of importing materials and the future of the CE marking regime , as are many manufacturers
Carolyn Fairbairn , CBI Director-General , said : “ While each sector has issues specific to them , there are many crossovers and common principles that unite them , for example the need to avoid cliff edge changes that cause disruption to supply chains and trade .
“ Where companies differ is how they prioritise these issues and the contrasting emphasis they place on trade , migration and regulation . To make a success of Brexit for the whole economy , Government needs to work through all these issues , as well as seize the opportunities afforded by a new focus on the UK ’ s global economic relationships .
“ From aviation and chemicals to life sciences and agriculture , firms of all sizes will want to understand how easy it will be for them to trade in the future with the EU , which remains the biggest market for British businesses . They need to know what rules they will be working by and how they can still secure access to skilled workers and labour , where shortages already exist .”
The report identifies that many legal requirements have cross-sector implications – for example , energy and environmental regulations have an impact on construction , housing , manufacturing , water companies . The success or failure of some sectors could affect others – the future of financial services regulation , for example , has been raised by firms in the automotive , housing , real estate and retail sectors , given the role they play in finance , insurance and pensions . Meanwhile , the increasing diversity of offerings from firms means they have cross-sector interests - some food and drink companies produce biofuels as well as the products on our supermarket shelves , and many manufacturers offer comprehensive services packages alongside their goods .
Carolyn Fairbairn , CBI Director-General , said : “ The modern UK economy is ever more interconnected . Legislation in one sector can have a knock-on effect in many others . For example , any business that handles data or has an online presence can be affected by future digital regulations , not just technology companies .”
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