Business secretary Sajid Javid has met with UK business leaders to calms fears that short term economic shock would not be translated into long term structural decline.
“My objective now is to ensure that the negotiation of our future relationship with the EU is carried out in the interest of UK companies, investors, potential investors and workers,” Javid said in a statement ahead of the meeting yesterday that included employers’ groups and the chiefs of some of the UK’s largest businesses across a range of sectors.
“There are significant challenges ahead, but the economic success of the past few years means we’re better able to withstand the current market turbulence and work towards a better future. The UK remains open for business,” Javid said.
‘Single market access crucial to economic growth’
Meanwhile the FSB has added its voice to calls for the UK to retain as much access as possible to the European Single Market. “Smaller firms need simple access to the single market, the ability to hire the right people, continued EU funding for key schemes and clarity on the future regulatory framework,” said FSB chairman Mike Cherry.
“This is crucial to ensure economic growth and job creation.”
“The UK decision to leave the EU will impact smaller firms which directly import, export, but are also part of a supply chain. Directly and indirectly, many small businesses have benefited from EU funds, some channeled toward infrastructure and others toward local initiatives,” Cherry said. “FSB members want reassurance that all schemes remain fully-funded in the short-term and a full assessment of the future of EU-funded schemes takes place.
“The government’s deregulation drive has seen some success, but we now call for a stronger role for the regulatory policy committee in terms of tax regulations and rules coming from the EU.
“Government should now be setting out their approach to boost this drive to remove red tape. UK/EU law has been developed over the last 40 years and now needs to be disentangled, and Government must provide clarity over what new regulation may be required.”
“We will seek to ensure that the confidence of the UK’s 5.4 million small businesses, which is already at its lowest level since 2013, does not fall any further.”