The head of the British Chambers of Commerce (BCC) has urged Andy Burnham to prioritize repairing the economic damage caused by Brexit as he reassesses Labour’s stance on EU membership. Shevaun Haviland, the BCC’s director general, welcomed Burnham’s decision to reopen the debate, despite the uncertainty it may create, arguing that the current trading relationship with the EU is detrimental to businesses.
Haviland highlighted that more than half of the bosses surveyed by the BCC believe the Brexit deal negotiated by Boris Johnson’s government in 2021 has not benefited their operations. She noted that businesses expected initial difficulties to ease over time, but this has not occurred. Economists estimate the cost to the UK economy at up to £240bn, with national income per head between 6% and 8% lower than it would have been without Brexit. The Office for Budget Responsibility projects a long-term hit of about 4% of GDP.
At Labour’s conference in Liverpool last month, Burnham acknowledged that Brexit had done “more harm than good” and pledged to reassess Britain’s relationship with the EU. He suggested options including rejoining the bloc. Haviland announced that the BCC would consult its 50,000 members, who employ over 6 million people, on various options for Britain’s future relationship with the EU, emphasizing that the focus should be on economic rather than political considerations.
Haviland also called on Chancellor John Healey to take bold action in the upcoming budget to support businesses facing rising energy prices and other economic pressures. She argued that firms need relief from energy bills, business rates, and employment taxes to drive economic growth. Fairbanks, the head of the Norfolk Chambers of Commerce, noted that some Brexit-backing bosses now recognize the economic damage, though those opposed to Brexit remain steadfast in their views.