In recent years, the debate over whether the UK should remain a part of the European Union has intensified, in part due to the large bailouts required by countries such as Greece and Portugal. It is an issue that divides the Conservative Party where differences about whether continued membership is good or bad for business are never far from the surface.
However, a recent study has revealed that a large majority of British companies believe exiting the EU would have a severe impact on business. Out of 415 companies participating in a YouGov poll for the Confederation of British Industry (CBI), 8 out of 10 fear that quitting the EU would leave Britain less competitive.
The main concerns highlighted in the report involved access to trading markets and attracting business investment, with many voicing the opinion that Britain’s export market would suffer as a result of breaking with the EU.
Yet employment was also flagged as a key issue, with 47 per cent of respondents claiming they would be worried about finding skilled workers. This compared to only 3 per cent who believed locating and taking on skilled workers would be easier.
CBI director general, John Cridland, believes that the majority of British businesses would vote in favour of remaining a member state should a referendum take place in 2017.
He says; “This sends a clear message that most CBI members, big and small, support UK membership of the EU.
“Firms want what is best for jobs and growth, and there is genuine concern that an exit would hit business investment and access to the world’s largest trading bloc.”
In total, 78 per cent of CBI members were in favour of remaining part of the EU thanks to the benefits for business. 12 per cent abstained, while only 10 per cent believed that leaving would be the correct move in stimulating business growth.
Despite this support, nearly all firms believed that the relationship between member states must be reformed. They would like to see new rules put in place as a means of ending “gold plating” of EU legislation, and insist that the rules must be implemented fairly with all member states being bound by them.
Mr Cridland concludes; “The UK should take the lead on the push for reform and make sure rules are evenly applied across the EU.
“Businesses are also concerned about the UK gold-plating legislation from Brussels.
“Businesses do have some serious concerns about the EU, but ultimately they want the UK inside the tent winning the argument for reform.”
Do you think businesses would benefit from remaining in the EU, or would an exit allow for new trade links to be made without constraints from Brussels?
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