Shevaun Haviland, director general of the British Chambers of Commerce (BCC), has urged Prime Minister Andy Burnham to make repairing the economic fallout of Brexit a top priority. Haviland expressed support for the Prime Minister’s decision to reconsider the government’s established red lines regarding EU membership, despite the potential for short-term uncertainty. She argued that the current framework governing the UK’s trading relationship with Europe is actively hindering business performance.
Reflecting on the findings of surveys conducted by the BCC, Haviland noted that over half of the business leaders consulted feel the trading deal implemented in 2021—negotiated by the Boris Johnson administration—is failing to deliver benefits. Businesses initially anticipated a difficult transition period that would gradually improve as firms adjusted to new regulations, but that expected recovery has not materialized. Recent estimates from economists suggest the UK economy has already suffered costs reaching up to £240bn, with national income per head currently between 6% and 8% lower than it would have been had the country remained within the EU. Furthermore, the Office for Budget Responsibility projects a long-term economic hit amounting to approximately 4% of the nation’s GDP. “We do think it’s right, because of what we know from the evidence of how businesses feel it’s not working,” she said. According to highlighting the continuing economic hit from Brexit, Haviland, 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. What businesses understand is what we had before and what we’ve got now. “You can’t just trot along in a crouch position effectively.
During a recent Labour conference in Liverpool, Burnham acknowledged that Brexit had caused “more harm than good” and committed to re-evaluating Britain’s relationship with the bloc. The Prime Minister has since indicated that refusing to pursue a more effective deal with the EU would represent a significant failure of duty. In response, the BCC plans to consult its 50,000 members, who collectively employ more than 6 million people, to gauge their preferences on future ties with Europe, including the potential for rejoining. According to he opened the door to options including fully rejoining the bloc, and this week he, Failing to pursue a better deal with the EU would be a “major dereliction of duty”. From the where we are to the most extreme, so we are going to set out the options. And our partners, we will see where people are.”, and in consultation with our chambers.
Speaking from an NCC trade fair at the Norfolk Showground, Haviland emphasized that for the business community, this is an economic issue rather than a political one. Nova Fairbanks, chief executive of the Norfolk Chambers of Commerce, noted that while some pro-Brexit business owners may be reconsidering their stance, those who opposed the decision remain firm in their view that closer alignment with Europe is essential. Haviland argued that a decade after the referendum, the nation must move beyond the original rhetoric of Brexit to focus on pragmatic solutions. “We are 10 years since the referendum,” Haviland said. “We would say the language of Brexit needs to move on.
Beyond trade relations, Haviland addressed the immediate pressures firms face from elevated energy costs and broader economic instability exacerbated by conflicts in the Middle East. She urged Chancellor John Healey to avoid a passive “steady as she goes” approach in the upcoming budget. Instead, she called for targeted interventions to reduce business costs and stimulate growth, suggesting the government could lower the tax burden, which currently makes up 60% of energy bills. Haviland called on the chancellor, John Healey, to take bold action at this month’s budget to support firms despite concerns at the heart of government about the pressure on the public finances amid jitters in the bond market. “The big test for the chancellor is to put his money where his mouth is for business at the budget. Business rates and taxes on employment to help companies recruit more young people. “In your energy bill, about 40% of your energy is actually energy, haviland called for action on energy bills.
The BCC is specifically advocating for adjustments to business rates and employment taxes to help firms recruit younger staff. Haviland stressed that the Chancellor needs to demonstrate a genuine belief that businesses are the primary engines of wealth and job creation. By investing in the private sector and relieving operational costs, she argued, the government could successfully kickstart the British economy and move past the current stagnation.
