Commenting ahead of the First Reading of the Repeal Bill, Dr Adam Marshall, Director General of the British Chambers of Commerce (BCC), said:

“Business communities across the UK tell us very clearly that they want day-one certainty and stability on the rules and regulations they will face when the UK leaves the EU.

“Continuity and equivalence are needed to prevent any disruption to British business, particularly in terms of our trade with partners and markets in Europe and beyond.

“A legislative transition of this scope has never before been undertaken. We will be keeping a watchful eye for the possibility of unintended consequences that lead to new burdens or compliance costs, whether particular firms, sectors or the economy as a whole. Our clear message to Westminster politicians is that this bill must not be amended in a way that makes the UK a more expensive or complex place to do business, which would risk undermining our future competitiveness.

“In the fullness of time, after 2019 and after a permanent Brexit deal is secured, government and business must work together to determine where it is beneficial to maintain regulatory equivalence with the EU for the long term, and where the UK needs to set its own path in the interests of competitiveness and growth. For now, though, continuity is key to business investment and confidence.”

One month on from the General Election, the British Chambers of Commerce (BCC) today (Monday) publishes a post-election survey of over 2,400 companies, which shows that while businesses have a range of views on their preferred objectives for the UK in Brexit negotiations, there is almost no support to conclude UK-EU talks without a trade deal.

Asked to consider which option came closest to their view about what the UK’s Brexit negotiation objectives should be, the survey – carried out just after the election – showed:
• 2% said leave the Single Market and Customs Union, and rely on WTO rules for trade (leave without a trade deal with the EU)
• 34% said remain in the Single Market and Customs Union
• 13% said remain in Customs Union only (no hard borders or tariffs, but limited scope to negotiate trade agreements with third countries)
• 11% said remain in the Single Market only (accept EU regulations and rules in return for full access to market)
• 28% said a comprehensive Free Trade Agreement and a customs agreement (the government’s pre-election objectives, set at the Prime Minister’s Lancaster House speech)

Respondents were also asked about a transition period, and which of the following options they believe is best for their business:

• 46% said ‘a transition period of three years’
• 22% said ‘a transition period of longer than three years’
• 17% said ‘no transition period’

Dr Adam Marshall, Director General of the British Chambers of Commerce (BCC), said:

“Our results make it clear that there are a range of business views on what the UK should be seeking in a final deal with the EU, but there is near-universal consensus that a deep and comprehensive agreement is needed. ‘No deal’ isn’t seen as a viable option. Businesses want a pragmatic settlement on the practical, real-world issues that affect their operations, not arbitrary political red lines.

“By more than three to one, businesses want a transition period on the way to a final agreement with the EU. This is critical to prevent firms facing the prospect of repeated, costly adjustments to new trading conditions. If companies have to change their business model once in 2019 and again several years thereafter, the competitiveness and investment potential of our firms will be undermined.

“Getting transition arrangements on the negotiations agenda as quickly as possible would give businesses – many of whom are considering big investment decisions now – the confidence to press ahead.”

Commenting on the transport investment strategy announced by the Department for Transport today, Jane Gratton, Head of Business Environment at the British Chambers of Commerce (BCC), said:

“Infrastructure projects, both large and small, give business communities across the UK real confidence. A long-term approach to improving productivity and connectivity is welcome but businesses have seen strategies come and go, the real proof comes when they see diggers in the ground.

“Investment in local roads will be particularly well-received by businesses who often express frustration at the capacity and quality of the current system. While ‘A’ roads are of national strategic importance, local areas are best placed to identify how those assets may be enhanced to promote growth opportunities and should be given the flexibility to do so.

“UK businesses want to see progress on major projects such as Heathrow and HS2, but action on smaller schemes such as local road and rail maintenance unlocks access to major cities and create new paths for communities in all parts of the country.

“Businesses will want this strategy to represent additional and better-focused investment to provide the UK with a quality infrastructure system that supports business growth. Transport projects ‘crowd in’ additional investment, generate jobs on site and across supply chains, and support greater connectivity between businesses and their markets, suppliers and customers.”

Hear from Labour party leader Rt Hon Jeremy Corbyn MP at the British Chambers of Commerce Business and Education Summit.

How can businesses and education providers work together to help young people succeed in their careers?

Join us on Thursday 6 July to hear from other influential names in the worlds of business and education including, among others, Neil Carmichael (Former chair, Education Select Committee), Rt Hon Sir Vince Cable MP (Former Secretary of State for Business, Innovation and Skills) and Judith Doyle (Principal/CEO, Gateshead College, 2016 TES FE leader of the year).

Network with businesses and educators across the country, as well as taking part in interactive breakout sessions run by ‘F1 in Schools’ and ‘KMF’.

Tickets are selling fast so book now to attend and take advantage of this exciting opportunity to hear the Leader of the Opposition, Rt Hon Jeremy Corbyn MP, speak on skills and education.

We hope to see you on the day!

On the day negotiations begin on the UK’s departure from the European Union, Dr Adam Marshall, Director General of the British Chambers of Commerce (BCC), said:

“As Brexit talks commence, UK firms want practical economic issues to be at the heart of the negotiations. Business wants an atmosphere of pragmatism, civility and mutual respect to characterise this complex process.

“Over the coming weeks and months, the UK government must demonstrate how it is working to address the everyday considerations of British companies in the talks – who can they hire, whether their goods will be stopped at borders, and whether they will have to cope with extra costs.

“Parties on both sides should begin the negotiations by seeking to guarantee the rights of EU citizens already in the UK, and UK citizens in the EU-27. Swift agreement on citizens’ rights would remove a highly emotive and politicised issue from the complex road ahead, while at the same time ending a year-long source of uncertainty for individuals, communities and employers alike.

“It’s important to remember that negotiations on some of the most crucial business issues, such as the nature of the future UK-EU trading relationship, won’t begin straight away. We will continue to campaign for the priorities and concerns of business communities across the UK as negotiations continue – and ensure that their practical priorities are front and centre.”

The UK’s decision last June to leave the European Union has enormous consequences for all of us – for businesses this means leaving an institution that has been the cornerstone of our trading relationship with the European continent for over 40 years.

Whilst business communities across the UK have shown a remarkable resilience to grow, invest, trade and recruit since the European referendum, they are uncertain about the future as the UK embarks on the process of dis-entangling itself from the EU.

Chambers of Commerce have been in deep consultation with local business communities across the UK since the referendum and the key priorities of business are clear. They want the next government to secure an EU trade deal that minimises costs and trade barriers. Currently there are no tariffs on the movement of products among EU member states, but if a deal isn’t reached in the negotiations, reverting to WTO rules could result in tariffs of up to 10% being imposed on the export of cars for example, creating huge costs and complexities for integrated cross border supply chains.

However, it is the non-tariff barriers that often carry a greater cost to businesses. Areas that will need to be resolved include the mutual recognition of standards, contracts and qualifications, the sharing of data, and rules of origin. Negotiations on these areas will be complex, but need to be successful to keep costs and regulatory burdens to a minimum.

Businesses have consistently expressed concerns about their ability to source the talent they need to grow. Current levels of low unemployment and an ageing workforce have meant that foreign labour has been a critical part of business recruitment. The uncertainty over the status of EU nationals currently living and working in the UK has already had a negative impact on the retention and morale of employees. The next government must provide immediate certainty for businesses on the residence rights of their existing EU workforce, not contingent on any other aspect of the UK negotiations with the EU-27. A future UK immigration system must allow businesses to access workers from the EU in sectors where there are acute labour shortages with minimum bureaucracy, cost or barriers.

The publication of the Great Repeal Bill white paper in March 2017 was a positive step in providing regulatory certainty for business on the day that the UK leaves the EU. The bill aims to convert existing EU law into UK law; give Ministers the power to amend these laws using statutory instruments to reflect new institutions and legal jurisdictions in the UK; and repeal the 1972 European Communities Act. Further work must now be undertaken to develop future customs procedures at the UK border, clarifying tax systems and arbitrations processes, and the development of a funding system to replace the EU funded projects and schemes that support higher education, research, infrastructure development, regeneration, skills programmes and business support schemes.

It is important that the UK government reflects the priorities of our business communities across all the nations and regions of the UK. This is particularly acute in Northern Ireland, which is the only part of the UK that shares a land border with the EU. Businesses want no return of a hard border on the island of Ireland, so that we can maintain free trade and people flows across the border and limit any new bureaucratic arrangements.

Both the main UK political parties have set out their wishes for a comprehensive agreement with the EU that delivers a smooth, orderly Brexit.
The business community is a willing partner in ensuring this outcome, and that the UK emerges from this process ready and able to take advantage of future opportunities for prosperity and growth.

With a year to go until the General Data Protection Regulation comes into law, the British Chambers of Commerce (BCC) is urging businesses to start preparing to ensure that they are compliant with the legislation when it comes into force.

From 25 May 2018, all businesses that hold personal data will have to guarantee that their data procedures are fit for purpose and compliant with the new regulation.

While the GDPR is an EU-initiative, the UK government has already made it clear that the legislation will still take effect in the UK after Brexit. Businesses that are found to be non-compliant risk potential fines of up to €20 million or 4% of annual worldwide turnover.

Chambers of Commerce around the country are urging their members to start taking the necessary preparations to ensure they are ready for the regulation.

Steps for businesses to take include:
• Document what personal data the company holds, where it came from and who it is shared with. Firms may want to consider organising an information audit or speaking to a data expert
• Review current privacy notices and plan for any necessary changes needed before the implementation deadline
• Check procedures to ensure that they cover all the rights individuals have under the new rules, including how to delete personal data or provide data electronically if needed
• Review how the company seeks, obtains and records consent from individuals, and whether any changes are necessary
• Ensure the right procedures are in place to detect, report and investigate a personal data breach
• Determine whether a Data Protection Officer is required, and designate one if so, to take responsibility for data protection compliance and assess how the role will sit within the organisation.

For more steps on preparing for the General Data Protection Regulation, businesses should revert to the Information Commissioner’s Office checklist.
David Riches, Executive Director at the British Chambers of Commerce (BCC), said:
“Businesses need to be proactive about ensuring they are ready for the new data protection regulations when they come into force this time next year, and not leave preparations until the eleventh hour. Those firms that don’t fulfil the necessary responsibilities leave themselves vulnerable to tough penalties, not to mention public scrutiny.

“With twelve months to go, there are a number of procedures businesses should be reviewing to determine what changes may need to be introduced to be compliant. Businesses that are already vigilant about their data protection responsibilities won’t be unduly burdened by the new legislation.

“The General Data Protection Regulation is intended to reflect modern working practices in the digital age, and will strengthen consumer trust and confidence in businesses. It will establish a single set of rules across Europe, which will make it simpler and cheaper for UK companies to do business across the continent, even after we leave the EU.”

For UK businesses to the deliver the jobs, growth and investment needed to secure our long-term economic future, they need a competitive environment here at home. However, as we approach yet another General Election, the UK continues to lag behind its international competitors.

While corporation tax is decreasing, businesses remain disappointed at the lack of action on the high up-front taxes and costs of doing business in the UK. Companies continue to face unacceptably high input costs which weigh heavily no matter the stage of the economic cycle, company performance or ability to pay. The new tax year saw firms hit with a raft of changes adding to the upfront cost of doing business, including the introduction of the Apprenticeship Levy, Immigration Skills Charge, and a new National Living Wage.

Despite some improvements, the fundamental unfairness of the business rates system remains, with firms across the country continuing to pay the highest business property taxes in the developed world. In its current form, the business rates system creates a number of perverse incentives for business location, property improvement and plant and machinery investment. Businesses also continue to face significant difficulties in hiring staff with the right skills. The BCC’s Quarterly Economic Survey – the UK’s largest and most authoritative private-sector business survey – confirms that the proportion of firms reporting recruitment difficulties remains close to a record high.

Business communities are therefore calling for the next government to commit to no new up-front business taxes or costs until the end of the next Parliament in 2022 and further, more radical, reform of the broken business rates system. This must include the removal of plant and machinery from business rates valuations which does so much to undermine business investment.

The new government must also do more to protect the long-term health of the UK jobs market, including improving the transition from education to business by guaranteeing universal ‘experience of work’ in all schools for under 16 year olds, and delivering a future immigration regime based on economic need – rather an arbitrary migration target.

Tackling these longstanding issues has come even more pressing with the UK economy set to enter a more challenging period. The first estimate of UK GDP growth indicated that the UK economy suffered a loss of momentum in the first quarter of 2017. With inflation rising it is likely that the Q1 slowdown is the start of a sustained period of weaker growth, as the UK’s over reliance on consumer spending becomes increasingly exposed.

Yet you wouldn’t really know this from reading the various party manifestos that have just been published with political posturing largely put ahead of the need to create the best possible conditions for long-term economic growth. While there were some bright spots, notably promise of further action on business rates and improving digital and mobile connectivity, these were largely offset by proposals for higher personal and business taxes, significant market interventions and cuts in immigration. While business confidence remains relatively strong this may not last if such short-term political thinking is put ahead of securing our long-term economic future.

Tackling these fundamental concerns will help ensure that our economy successfully navigates through a world full of turbulence, both political and economic, and crucially remains a great place to do business through the Brexit process and beyond.

The British Chambers of Commerce (BCC), in partnership with DHL, today (Friday) publishes its latest Quarterly International Trade Outlook, which shows that confidence among UK exporters remains strong.

The number of businesses reporting improved export sales increased in the first quarter of 2017. Businesses in both manufacturing and services are also more confident that their turnover and profitability would increase in the coming 12 months.

The BCC/DHL Trade Confidence Index, which measures the volume of trade documentation issued by accredited Chambers of Commerce, rose by 5.5% on the quarter – and is up 9.06% from the same quarter last year – standing at its second highest level on record.

The results show that businesses are continuing to trade despite political uncertainty, however currency fluctuations remain a concern. 52% of manufacturers and 25% of services firms say exchange rates are more of a concern to their business than three months ago.

To maintain momentum, and to help UK firms succeed beyond Brexit, the government should develop an expanded trade mission and fairs programme, help businesses build links with key trade partners and underpin deals, and expand funding for front-line assistance to exporters. Businesses will be looking for the next government to secure frictionless future trade arrangements with the EU, crucial to both importers and exporters, as well as to broker new relationships with emerging markets.

Key findings from the report:

• The BCC/DHL Trade Confidence Index, a measure of the volume of trade documentation issued nationally, rose by 5.5% on the quarter. The Index now stands at 126.55 –up 9.06% on Q1 2016 – and is the second highest level since records began in 2004
• The balance of manufacturers reporting improved export sales rose from +16% to +26%. Looking at services, the balance of firms reporting improved export sales rose from +8% to +10%
• The balance of manufacturers reporting improved export orders rose from +13 to +22 in Q4 2016, while in services it fell slightly from +6% to +5%
• Looking at expectations of turnover over the next 12 months, the balance of manufacturers confident of an increase held fairly steady, rising from +43% to +44%. In services this rose by four points from +35% to +39%
• Confidence that profitability would improve rose to +28% for services companies – up from the +21% in Q4 2016. The balance of manufacturers jumped by ten points, from +22% to +32%

Commenting on the findings, Dr Adam Marshall, BCC Director General, said:

“Confidence among exporters is strong, which is a timely reminder that businesses are doing their best to ignore the cacophony of political noise around them and focus on the success of their own operations.

“While confidence among UK exporters is high, rising costs, recruitment difficulties, and concerns around currency fluctuations could temper their growth if allowed to continue unchecked. Alleviating the burden of upfront costs and addressing the skills gap would increase productivity, investment and growth.

“For UK exporters to succeed in the long-term, the next government must deliver not only a Brexit deal which allows for frictionless trade with Europe, but also pragmatic and practical support for businesses looking to develop lasting links with new customers and markets around the world.”

Ian Wilson, CEO DHL Express UK and Ireland, said:

“Despite the many unanswered questions about what a post-Brexit Britain will look like, this latest Quarterly International Trade Outlook demonstrates that UK exporters remain optimistic about what the future holds.

“As a facilitator of international trade, we’ve seen our customers embrace the short term benefits that came with the fall in the value of the pound. However, this report demonstrates that whilst businesses are confident, they are not complacent – with currency fluctuations a lingering concern for exporters. In these uncertain times, there is an even greater imperative to expand the portfolio of markets businesses trade with to help spread the risk across multiple currencies.”

The Norway model. The Swiss model. The Turkish model. A CETA (the EU-Canada trade deal) inspired Free Trade Agreement. What kind of deal can the UK strike with the EU? And can businesses prepare for one of these options – or even for the possibility of leaving the EU without a transitional or future agreement in place in 2019?

The answer is: at the moment – no. The implications of each of these scenarios are far-reaching – affecting issues such as movement of people, tariffs, taxation arrangements, customs procedures – and the difference between each of these models is so significant, that it is currently too challenging to scenario-plan for any of these eventualities.

This is why many businesses are choosing to get on with their day-to-day work, and wait until there are further developments in the upcoming negotiations. Of course, there are some – such as those that use the UK as a hub into Europe, or businesses that were already looking to expand to the continent prior to the referendum – for whom Brexit has been a catalyst to strengthen their footprint on the continent.

For most other businesses, it is a question of wait and see. But when details start emerging on the future arrangements with Europe, the high-level discussion of models will need to be brought back down to earth. Businesses will not be concerned with how the deal will be called. Instead, they will want to know answers to questions such as: Will I now have to pay VAT on imports? What kinds of origin rules do I need to adhere to? Will I need to prepare myself for longer customs procedures? If my products go through phytosanitary checks in the UK – would they now have to go through a second set of checks in the EU?

These are the questions that will have the greatest impact on UK trade in the immediate term. Changes in areas such as taxation and customs will have significant implications for supply chains, for importers and exporters alike, for companies both large and small. But where a larger company can, should they wish, afford to think through potential answers to the above questions – SMEs will remain focused on the day-to-day running of their business, and wait until there are clearer answers.

And that is why, when significant progress is made in the negotiations, and future arrangements with the EU become firmer – the government must communicate this to businesses without delay. At the end of the day its companies that trade, not governments – so they must make sure not only to deliver the best deal for business but also take into account the tangible impacts and focus on the practicalities for firms.

Only when the future UK-EU trade ‘model’ is broken down into its practical nuts and bolts can Government truly enable companies to keep thriving in their trade with the EU – and beyond.