CBI prepares to call on MPs to avoid no-deal Brexit ‘wrecking ball’
The CBI will call upon MPs today to back the Prime Minister’s draft withdrawal agreement and avoid hitting the British economy with the “wrecking ball” of a no-deal Brexit.
Speaking at the CBI’s annual conference in front of more than 1,500 business leaders, CBI president John Allan is expected to ask politicians to consider the views of businesses as they decide whether or not to back the Prime Minister’s draft Brexit deal with the EU.
“We’re trying to reach a deal that respects the result of the referendum and minimises damage to our economy,” Allan will say of the draft agreement.
“While companies in this room would be the first to say that it is not perfect, it does open a route to a long-term trade arrangement and unlocks transition – the very least that companies need to prepare for Brexit.
“And most importantly, it avoids the wrecking ball that would be a no-deal departure.”
At least 24 MPs have said they have submitted letters of no confidence in Theresa May after her Brexit agreement means the UK cannot leave a temporary customs union arrangement with the EU of its own accord.
More than 200 chief executives have also written to MPs demanding they vote down May's proposals when the draft deal goes before parliament next month.
But Allan will reference Oxford Economics predictions that a no-deal Brexit would hurt GDP growth by two per cent in the short term and by up to eight per cent longer term.
“This turmoil is damaging our country now,” he will add.
“In the past few days alone, I’ve heard of a life sciences firm in the North West that has cut almost all investment in the UK – putting it instead in Germany and China.
“I’ve heard a Northern Irish tech firm that has stopped winning contracts because their aerospace customers are worried about Brexit. And a construction firm says it now costs an extra £20,000 to build a house, due to a shortage of materials and labour since Brexit. These stories are repeated across the country.”
Meanwhile, Liv Garfield, chief executive of Severn Trent, told the BBC’s Today programme this morning that businesses support May’s plan in a bid to secure certainty, saying the deal “allows us that certainty for investment”.
Brian Palmer, boss of a robotics firm called Tharsus, told Today that his firm is stockpiling supplies in case of a no-deal outcome.
“We crave a stable environment,” he said. “The thought of another general election with the increased uncertainty and potential for change is exactly what business doesn't need at this moment.”
It comes as an IHS Markit poll found that business confidence has fallen to its lowest since 2009, with hiring and investment plans in the manufacturing and services sectors falling on Brexit uncertainty.