8 OUT OF 10 FIRMS SAY UK MUST STAY IN EU

A CBI/YouGov survey has revealed that, if a referendum on the future membership of the European Union was held tomorrow, a substantial majority of CBI members would support staying in. They fear that an exit would affect access to trading markets and business investment, leaving the UK less competitive. However, the firms also identify several priorities for reform

The survey of more than 400 businesses employing more than 1.5 million direct employees, shows 78% of firms favour staying in the EU, including 77% of small and medium-sized enterprises (SMEs). Just 10% think it is in their interests for the UK to leave the EU (11% of SMEs). Despite frustrations over the current relationship, and the burden of some regulations, particularly employment law, the survey shows most businesses feel the positives more than outweigh the negatives.

But firms do want to see the relationship reformed. Businesses are calling for a reduction in unnecessary regulations, for rules to be implemented evenly across all member states and for an end to the ‘gold-plating’ of EU legislation.

In the view of John Cridland, the CBI’s Director-General, “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. 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.”

The survey shows a majority of companies see the EU as having a positive impact on their businesses. They reported being able to buy and sell products inside and outside EU markets without prohibitive taxes or tariffs and to recruit staff from across the EU. However, they are concerned by the potential impact an EU exit would have on their businesses and the UK as a whole.

Some benefits to leaving were identified, such as a reduced regulatory burden. A significant minority of firms felt that an EU exit would have no impact on them, but very few pointed to positive benefits. A bigger proportion said that the UK leaving would have a negative impact judged against most criteria, including the UK’s international competitiveness, its ability to participate in EU supply chains and access to EU markets.