Potential investors in the UK are “reaching for their coats” because of Conservative MPs’ plans for a “hard Brexit” and the Labour party’s proposals to renationalise industry, according to one of the country’s most senior business figures.
Paul Drechsler, president of the CBI, the employers’ group. said in a speech on Monday evening that Labour’s plans to nationalise railways, the water industry and the energy network would cause “serious harm” to Britain’s reputation as a place to invest.
But Mr Drechsler added that the UK had to navigate “two significant threats” — plans for nationalisation and the risk of a hard Brexit.
He said many people believed that neither would happen, because the UK would strike a Brexit deal and politicians were unlikely to take private assets into state hands.
However, he added that he was not in the business of making political predictions.
“The first lesson in business is, confidence is everything . . . and every day, I’m hearing of potential investors in this country reaching for their coats,” he said.
“Because they’re not going to risk putting their money into an economy that soon might face export barriers to its single biggest market . . . let alone invest in companies, assets and services that could soon be taken over by the state.”
The CBI campaigned for Remain in the run-up to the EU referendum. On Monday, Mr Drechsler urged pro-Brexit politicians to “drop the ideology” and focus instead on evidence.
“You want the hardest of hard Brexits?” he said. “Show me the evidence that hard Brexit will deliver more jobs, prosperity and trade for our country.”
“But if not, we have got the evidence on the best way forward, from thousands of conversations with thousands of businesses — a customs union, and a deep relationship with the single market.” [...]
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CBI President: Renationalisation would cause immense damage to UK economy & reputation
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