After Labour's tentative step towards EU, business is crying out for bolder action
Business community says ‘the work must not stop here’ and ‘make this... just the beginning’ after Keir Starmer negotiates new EU-UK deal
"Businesses do not need more politics, they need progress.” So said Rain Newton-Smith, chief executive of the Confederation of British Industry, amid a storm of political protest over Keir Starmer’s new deal with the European Union.
With the Conservatives, Reform UK and the SNP accusing Starmer of ‘surrendering’ in one way or another to the EU, the message from business was pretty clear.
Newton-Smith, who suggested British and European firms would be “breathing a sigh of relief”, said: "The work must not stop here: making the most of this opportunity means not just resetting the relationship but futureproofing it. With the EU as our largest trading partner, continued cooperation will unlock the investment needed to drive growth, protect jobs, and raise living standards.”
Palpable excitement
Stephen Phipson, chief executive of manufacturing organisation Make UK, praised the government for taking a “pragmatic approach to improving relations with the EU”. “We urge government to continue this good work and make this first UK-EU political summit... just the beginning in further refinements of future trading arrangements so trade and growth prospects can continue to be improved for companies on both sides of the Channel.”
And, responding to the deal, Enrique Cornejo, head of energy policy at Offshore Energies UK, spoke of the chance to create a £7 billion market for UK carbon-storage services by 2040 and of “the potential to reintegrate UK and EU electricity markets, reducing frictions and costs to consumers”. The sense of excitement over the possibilities was palpable.
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However, while this tentative step towards the EU is hugely welcome, it is still only tinkering around the edges of undoing the very real damage done to the economy by Brexit. Regular readers will be unsurprised to learn that The Scotsman fully supports calls from business for the government to go further.
The benefits of this particular deal may run into billions but could still be too diffuse to cause a significant shift in the dial of popular opinion. However, we can only hope they will prove tangible enough to encourage more of the same and put much bolder ideas, like rejoining the Customs Union, back on the political agenda.
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