"Making support for a Yes vote conditional on specific changes, Andy Burnham is adding to the pressure of Eurosceptic Conservative backbenchers and increases the risk of a No vote."
- Lucy Thomas, Campaign Director of Business for New Europe

Business leaders have said that comments made by Labour leadership candidate Andy Burnham on an EU referendum risk putting him and the Labour party on the side of those who wish to pull out of Europe. The pro-European business campaign, Business for New Europe, said that by making continued membership conditional on certain specific reforms, the Labour leadership candidate was deliberately adding further pressure on the Prime Minister which he is already receiving from his own Eurosceptic backbenchers.
 

Lucy Thomas, Campaign Director of Business for New Europe, said:

“Having spent the last few months campaigning vocally in favour of Britain’s continued EU membership it is strange that one of the leadership contenders is now putting conditions on that.
 

“It is absolutely right that the EU needs reform and some of the changes should include changes to benefits rules so that ‘free movement’ doesn’t mean the freedom to claim benefits. But, making support for a Yes vote conditional on specific changes, Andy Burnham is adding to the pressure of Eurosceptic Conservative backbenchers and increases the risk of a No vote.

“The overwhelming majority of EU migrants come to the UK to work, they are younger, healthier and more likely to be in employment than UK-born nationals. There are also the same number of UK migrants in the rest of Europe as there are EU migrants here, so this has to be put into perspective.”

Speaking on the BBC Andrew Marr Show, Andy Burnham said:

“Unless the Prime Minister delivers legislative change in terms of abuse of the rules of free movement by agencies and the effect on people with jobs here, it won’t be good enough. It really won’t be good enough.” He went on to say that it was ‘hard to imagine’ the circumstances in which he advocated a No vote.

“Businesses are clear that we need to get on with EU reform but treaty change not essential to achieve it”
- Lucy Thomas, Campaign Director of Business for New Europe

The new approach of Philip Hammond to EU reform has been welcomed by business leaders. The Foreign Secretary said yesterday that treaty change was not a vital aspect of the Government’s renegotiation agenda, which would focus more on substance. Mr Hammond also said he wanted a “Yes” vote to staying in the EU in a referendum, and for Britain to be “really engaged and a loud voice in the Union.” This marks a change from some of his pre-election rhetoric, in which he spoke of “lighting a fire” underneath the EU.

Instead of pushing for treaty change in and of itself, which is highly unlikely by 2017, business is clear that the Government should advance pro-business reforms which benefit all EU countries.

Lucy Thomas, Campaign Director of Business for New Europe, said:

“Businesses are clear that we need to get on with EU reform but treaty change not essential to achieve it - many of the reforms the UK wants can be achieved without it.  These include cutting red tape and making sure smaller businesses aren’t over-burdened with regulation and pushing for free trade deals with the rest of the world.  What matters for business is what works, not the fine detail that would dominate any attempt to change the treaties.”

“It is also encouraging that Philip Hammond is hoping for a Yes vote in a referendum, with Britain ‘really engaged’ in Europe. By working with other countries and finding changes that benefit the whole of Europe, the EU can work much better for Britain.”

 "The campaign over Britain's place in the world starts now"
- Roland Rudd, Chairman of Business for New Europe

British business is ready and willing to fight to stay in the European Union. Given that an EU referendum is now highly likely, business leaders from large and small businesses said that the overwhelming benefits of the EU needed to be heard.

Roland Rudd, Chairman of Business for New Europe, said:

"The campaign over Britain’s place in the world starts now. Our future prosperity depends on our remaining part of Europe. The overwhelming majority of businesses, large and small, are in favour of Britain remaining in the EU as an open outward-facing country. We look forward to making the case.”

Sir Roger Carr, Chairman of BAE Systems and member of Business for New Europe’s Advisory Council, said:

“There will now be certainty on the process [of a referendum], and it is important that the business community that believes in the UK being part of Europe steps up to make the case at the earliest opportunity.”

It is not merely large corporates that believe we are better off in. Allen Hogan, Founder of Hogan’s Cider, said:

“I set up Hogan’s in my back garden and now we’re exporting across Europe and the rest of the world. We can sell our cider hassle-free thanks to Britain’s EU membership. Far from drowning in ‘red tape’, we benefit from having one set of European rules. Britain has always been an outward-looking trading nation and businesses like mine hope that continues."

Britain has the largest digital economy in Europe, so making it easier for small businesses and sole traders to sell their products online across Europe will boost British growth." 
- Lucy Thomas, Campaign Director of Business for New Europe

“Those who think we can get what we want by putting a gun to Europe's head will think very differently upon reading this report.”
– Lucy Thomas, Campaign Director of Business for New Europe

A British exit from the EU would damage the economy as well as those of other EU members, according to a new German report. Two German research institutes found that Brexit could cost the UK as much as £215bn, or 14% of GDP. This outcome would also see Germany lose 2% GDP. The worst-hit other EU country would be Ireland, which could lose 2.66% of its GDP, the report finds.  
 
Responding to the report, Business for New Europe, the pro-European business campaign said the findings showed how other countries are beginning to assess the risks they may face were the UK to leave.
 
The report by two respected German think tanks, Ifo and the Bertelsmann Stiftung, found that in the best-case scenario, where Britain’s relationship with the EU would be similar to Switzerland’s, UK GDP would fall by 0.6%, costing £157 per head. However, in the worst-case scenario, Brexit could reduce UK GDP by 14%, or £3,467. While other EU countries would be hit, they would not experience anything like the same level of disruption.
 
Lucy Thomas, Campaign Director of Business for New Europe, said:
 
“This report yet again shows the huge potential risks of leaving the EU. It is revealing that even in the best-case scenario, Brexit would make each person in this country £150 a year worse off, while the catastrophic effects of a difficult exit do not bear thinking about. Europe remains absolutely vital to key sectors of our economy, like cars, chemicals and financial services.
 
“Eurosceptics frequently claim that the EU is more economically dependent on Britain than vice versa. This study shows that view to be utterly wrong. Other EU countries want to keep us in. But there is no doubt that Brexit would be far worse for us. Those who think we can get what we want by putting a gun to Europe’s head will think very differently upon reading this report.”

“With eurosceptics constantly talking up the likelihood of British exit, it is unsurprising that global businesses become nervous about their future here"
- Lucy Thomas, Campaign Director of Business for New Europe

HSBC’s decision to review the location of its headquarters shows the dangers of stoking uncertainty over Britain’s EU membership, says Business for New Europe. HSBC have said that uncertainty over Britain’s future in Europe is one of their top concerns – Chairman Douglas Flint said: ““One economic uncertainty stands out, that of continuing UK membership of the EU.”
 
Lucy Thomas, Campaign Director of Business for New Europe, said:
 
“European Union membership is very important for HSBC, as it is for many other banks based in London. As HSBC’s chairman said, ‘working to complete the single market in services and reforming the EU to make it more competitive were far less risky than going it alone, given the importance of EU markets to British trade.’ Of course the risk of Brexit is not the only factor in HSBC’s decision, but it cannot be ignored.
 
“With eurosceptics constantly talking up the likelihood of British exit, it is unsurprising that global businesses become nervous about their future here. The City of London is Europe’s financial centre, and Brexit would only cut it off from a market of 500 million consumers. HSBC employs 48,000 people in this country. Politicians should recognise the danger to jobs caused by playing with fire on Britain’s EU membership.”

“Britain's financiers recognise that the EU is changing for the better, and that the City's future could be bleak if we left.”
– Lucy Thomas, Campaign Director of Business for New Europe

A new survey by the Centre for the Study of Financial Innovation shows that support for EU membership is very strong in the City, Business for New Europe said today. The pro-European business campaign was responding to a new report by the CSFI, entitled The City and Brexit.  The report surveyed 408 people from all parts of the City of London.
 
73% of those surveyed said that they would vote to stay in the EU, compared to just 27% who would vote to leave. Most respondents said that, were the UK to leave, London would be damaged by being outside the EU’s single market and could lose its leading position to financial centres within the eurozone. Respondents also expressed enthusiasm for the EU’s intention to create a capital markets union across Europe.
 
Lucy Thomas, Campaign Director of Business for New Europe, said:
 
"This polling shows that Britain's financiers recognise the EU is changing for the better, and that the City's future could be bleak if we left.

"There is a perception that the UK cannot protect its interests, particularly over decisions relating to the City. 
 
"While the UK has lost some high profile cases, there have also been a number of successes, most notably in the recent ECJ case on euro clearing houses. 
 
"We also now have the first British commissioner in charge of financial services in Lord Hill. He understands the UK and is pushing for capital markets union, which will undoubtedly benefit the City."

“The UK is the number one destination for company headquarters in Europe and the highest recipient of foreign investment. Why put that at risk?”
– Lucy Thomas, Campaign Director of Business for New Europe

Many businesses in the UK would reconsider their presence in the UK were we to leave the EU, say pro-European business group, Business for New Europe.  They say that comments made by Philips CEO Frans van Houten, show that Britain’s place as the number one destination for company headquarters in Europe could be put at risk.

The Chairman of Tesco, John Allan, also said that companies could relocate their headquarters “relatively painlessly” away from the UK and that the forthcoming referendum would have a significant impact on foreign investment.

Lucy Thomas, Campaign Director of Business for New Europe, said:

"Philips is just one of many companies in the UK saying they would have to reconsider their presence if we left the EU.

"The UK is the number one location for company headquarters in Europe, and the highest recipient of foreign investment. Why would we want to put that at risk?

Frans van Houten also said that he sees a “United States of Europe” as the future direction of the EU, but BNE said that view was not shared across the business community.

Lucy Thomas said:

“Britain has a highly flexible relationship with the EU, with opt-outs in several areas, such as rules on working time. Businesses welcome that flexible approach.

"Mr van Houten obviously has his own personal view but a 'United States of Europe' is not something businesses would all agree with, nor is it something any EU leader is currently pushing for."

"Aiming for treaty change by 2017 was always ambitious and highly unlikely"
- Lucy Thomas, Campaign Director of Business for New Europe

Today's news that the European Commission foresee no treaty change before 2019 is not the end of Britain's push for reform say business leaders. 
 
Pro-EU business campaign, Business for New Europe, say that treaty change was always going to be unlikely by 2017 and in fact the best way to achieve reform to make the EU more competitive is by finding common ground with other European countries. 
 
Lucy Thomas, Campaign Director of Business for New Europe, said: 
 
"Aiming for treaty change by 2017 was always ambitious and highly unlikely.  The UK is much better placed seeking alliances across Europe to reform the EU in the British national interest.

"There are significant reforms that can be achieved without treaty change as even the Conservative Fresh Start group has shown. Now is the time to work with other EU countries to make them happen." 

“Our economic success is intrinsically linked to the rest of Europe, so leaving would be doubly damaging to us.”
– Lucy Thomas, Campaign Director of Business for New Europe

Businesses across Europe support British membership of the European Union, according to a new poll. The pan-European survey was carried out by the European Business Awards, and found a huge majority of European business leaders support Britain's continued membership of the EU. They also saw negative economic consequences of Britain leaving for their own counties, as well as Europe as a whole. 

Lucy Thomas, Campaign Director of Business for New Europe, said: 

“This makes clear that many businesses across Europe want Britain to remain an active member of the EU. They think the impact of the UK leaving would affect not only the British economy, but the rest of Europe too.

“Given that almost half of Britain’s exports currently go to the EU, our economic success is intrinsically linked to the rest of Europe, so leaving would be doubly damaging to us.”