Repairing Brexit economic damage should be Burnham’s top priority, business chief says

British Chambers of Commerce welcomes PM’s reopening of EU relationship debate

By LineZotpaper
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Sources2 outlets
The head of one of Britain’s leading business groups has urged Prime Minister Andy Burnham to make repairing the economic damage of Brexit his top priority, saying the UK’s current trading relationship with the EU is not working for businesses.

Shevaun Haviland, director general of the British Chambers of Commerce (BCC), said she welcomed Burnham reopening the Brexit debate despite the uncertainty it could create, arguing that the UK’s current trading relationship with the EU was bad for business.

“We do think it’s right, because of what we know from the evidence of how businesses feel it’s not working,” she said.

Haviland said more than half of bosses surveyed by the business lobby group believed the deal negotiated by Boris Johnson’s government and enacted in 2021 was not helping them. “We expected it to be very difficult at the beginning, when [companies] were getting used to the new rules, and then it would sort of get easier as it went to along. But actually, that has not happened,” she said.

Economists estimate the cost to the UK economy has been up to £240bn so far, with national income per head between 6% and 8% lower than it would have been had the UK not left the EU. The Office for Budget Responsibility estimates a long-term hit of about 4% of gross domestic product.

Speaking in an interview with the Guardian in Norwich alongside Nova Fairbanks, chief executive of the Norfolk Chambers of Commerce, Haviland said the government had to take into account business frustrations with Brexit.

At Labour’s conference in Liverpool last month, Burnham said Brexit had done “more harm than good” as he pledged to reassess Britain’s relationship with the EU. He opened the door to options including fully rejoining the bloc, and this week he said failing to pursue a better deal with the EU would be a “major dereliction of duty”.

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Analysis

Why This Matters

  • The prime minister is reassessing Labour’s red lines on EU membership, a shift that could reshape the UK’s trading relationship with its largest partner.
  • Business groups say the current arrangement is failing firms, a view supported by estimates of a significant hit to national income.
  • Reopening the Brexit debate carries political risk for the government, but also the prospect of reduced trade friction for companies.

Background

Andy Burnham became prime minister and has signalled a willingness to reconsider the UK-EU relationship, which was settled under the agreement negotiated by Boris Johnson’s government and in force since 2021. At Labour’s conference he described Brexit as having done “more harm than good” and left open options including full re-entry to the bloc. Business groups have consistently reported friction with the new trading rules, and economists have estimated the economic cost in the hundreds of billions of pounds.

Key Perspectives

British Chambers of Commerce: The BCC welcomes the reopening of the Brexit debate, arguing the evidence from its members shows the current deal is not working. It wants repairing Brexit’s economic damage to be the government’s top priority. Norfolk Chambers of Commerce: Joined the BCC in highlighting business frustrations with the post-Brexit trading environment during the Guardian interview in Norwich. Sceptics of closer EU ties: A full reassessment risks renewed political uncertainty, and any move toward rejoining would face significant political and institutional hurdles. The OBR’s estimate of a smaller long-term GDP hit than some other calculations suggests the scale of potential gains is itself debated.

What to Watch

  • Whether Burnham moves from rhetoric to concrete policy proposals on the EU relationship.
  • The reaction of business groups to any specific options put forward, and whether their reported frustrations translate into public pressure.
  • The political response inside Labour and from Brexit-supporting parties as the debate reopens.

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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