Repairing Brexit damage should be Burnham's top priority, says business group head
The British Chambers of Commerce chief welcomed the prime minister revisiting Labour's EU red lines, according to The Guardian.
The head of the British Chambers of Commerce (BCC) has said that repairing the economic damage of Brexit should be the top priority for prime minister Andy Burnham as he reconsiders Labour's red lines on EU membership, according to The Guardian.
Shevaun Haviland, the BCC's director general, told the newspaper she welcomed Burnham reopening the issue despite the uncertainty it could create. She argued 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 BCC believed the deal negotiated by Boris Johnson's government and enacted in 2021 was not helping them. She said firms had expected the early period to be difficult and then get easier, adding: "But actually, that has not happened."
The Guardian reported that economists estimate the cost to the UK economy at 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 newspaper said the Office for Budget Responsibility estimates a long-term hit of about 4% of gross domestic product.
The comments come as the government weighs its options. According to The Guardian, Burnham told Labour's conference in Liverpool last month that Brexit had done "more harm than good" and opened the door to options including fully rejoining the bloc. This week he said failing to pursue a better deal with the EU would be a "major dereliction of duty".
Haviland said the BCC would consult its 50,000 members, who collectively employ more than 6 million people across the UK, on a range of options, including rejoining the EU.
"We're apolitical, it's not a political question. It is an economic question," she said.
Nova Fairbanks, chief executive of the Norfolk Chambers of Commerce, was interviewed alongside Haviland in Norwich. She said it was clear that some Brexit-backing bosses recognised the economic damage.
Haviland also called on the chancellor, John Healey, to take bold action at this month's budget on energy bills, business rates and taxes on employment. The Guardian reported that this came despite concerns at the heart of government about pressure on the public finances amid jitters in the bond market.
Much is not yet known. The report does not say which option Burnham's government will pursue, or when it will decide. The BCC consultation has not yet taken place, so it is unclear where its members will come down. The Guardian did not give the date of the budget or details of what it will contain. The report also does not name the economists behind the £240bn estimate, or give the size or timing of the BCC survey.
