17 January 2019

Financial Times: Business groups call for politicians’ consensus on Brexit plan B

Business lobby groups insisted there was no point delaying the UK’s departure from the EU unless politicians forged a consensus on a Brexit plan B, as they expressed increasing concern about the risk of Britain crashing out of the bloc.

[...] Josh Hardie, deputy director-general of the CBI, said extending Article 50 to give more time for deadlock in parliament would be of “no use”. “If there were to be an extension, there needs to be a change in position [at Westminster] so that it can deliver for the UK,” he added. [...]

Adam Marshall, director-general of the British Chambers of Commerce, said the most important priority was to avoid a “messy and disorderly no-deal exit” on March 29.

“We have demanded that the government set out concrete steps, fast, to avoid such an outcome, and what it will do to reach a cross-party consensus,” he added.

“An extension to Article 50 would be a mechanism to achieve this, but it is not an end in and of itself.”

Mike Cherry, who chairs the Federation of Small Businesses, said political events this week resembled “a road trip gone horribly wrong”. “If a short, technical extension to Article 50 can avoid [a no-deal Brexit] and provide a clear path towards a deal that has the support of parliament, it must be considered,” he added.

“However, let’s be absolutely clear, any extension must come with a clear road map outlining what exactly negotiators are trying to achieve.”

Stephen Martin, director-general of the Institute of Directors, said: “For each passing day without clarity either about the government’s intended next moves or comprehensive information about day one plans for no-deal, it becomes more and more difficult for businesses to be ready in time.

“The timetable for leaving the EU should reflect this fact, and a limited extension of Article 50 may well be needed,” he added.

Mr Hardie said that, rather than the CBI endorsing different models to Mrs May’s deal for a post-Brexit future, such as Norway-style membership of the EU single market, “we want all politicians to come together without all these demands and pre-conditions, because otherwise you won’t have an honest conversation”.

He added business did not want a second Brexit referendum. “A second referendum is not businesses’ first choice at the moment,” he said. “Business is very keen for there to be a deal on the table.”

Mr Marshall said the BCC did not back a permanent customs union between the UK and the EU, membership of the bloc’s single market, or a second referendum. [...]

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