21 November 2022

FT: UK business leaders urge Sunak to seek better EU relations

Rishi Sunak will on Monday face pressure from business to soften the economic effects of Brexit, including opening the doors to more immigration to fill holes in the country’s labour market.

The prime minister, who will deliver a speech on innovation to the CBI employers annual conference in Birmingham, will be urged to improve relations with the EU and to take the brakes off the country’s economy. CBI director-general Tony Danker’s call will launch a fresh battle over Europe with hardline Conservative Brexiters, urging ministers to allow more migration and to boost trade with the EU.

In a speech on Monday attended by Sunak, Danker will tell Brexiters that “the best guarantor of Brexit is an economy that grows” and urge the prime minister to end the stand-off with Brussels over the Northern Ireland protocol. Danker will also call on the government to consider fixed-term visas to address “vast” labour shortages facing British businesses.  “Let’s have economic migration in areas where we aren’t going to get the people and skills at home anytime soon,” he will say. “People are arguing against immigration but it’s the only thing that’s increased the potential growth of our economy since March.”

Danker will use his speech to warn that the UK’s trade as a percentage of gross domestic product was the lowest in the G7. Last week the independent Office for Budget Responsibility said Brexit had had a “significant adverse effect” on trade. Jeremy Hunt, chancellor, said he wanted to see the “vast majority” of trade barriers between Britain and the EU removed, but did not say how that might be achieved....

 more at FT

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