Show UK is open for business and ready to seize Brexit opportunities: Beckie Hart

Firms across the UK have shown their commitment to adapting to the new UK-EU relationship. Yet, many of them face serious challenges when it comes to trade with the UK’s largest partner.

Compared to our international peers, UK trade has underperformed since the EU-UK Trade Cooperation Agreement (TCA) was implemented, ushering in a new era of increased costs, bureaucracy and complexity.

Last year, our surveys showed that one-third of companies in the manufacturing and distribution sectors thought competitiveness has worsened since the TCA’s implementation.

And firms have had to spend time and resources complying to new rules because of regulatory divergence in industries like chemicals, consumer goods and medicines.

Businesses want to make the most of our new opportunities.

But amidst political and economic uncertainty, growth has had to take a back seat. After two years, negotiations on the Northern Ireland Protocol are still ongoing. While this obviously impacts the NI economy, it also holds the UK back from working together with the EU on crucial joint opportunities.

Take Horizon Europe, for example. Firms are still awaiting progress on the UK’s accession to the EU’s £15bn R&D programme.

And there are more opportunities up for grabs too – like on regulatory reforms. If done right, there’s a chance to regulate markets more smartly and effectively, making it a real competitive advantage.

But the Government’s current plans – outlined in the Retained EU Law Bill – would have all EU laws in the UK expiring at the end of 2023, regardless of whether firms think they’re helpful or not.

The Bill’s current approach could effect laws that impact all businesses – from employment law to sector-specific rules like product safety.

That’s creating enormous uncertainty for UK firms. Instead of a wholesale approach, we need to review, retain and reform laws where they’re beneficial to the UK’s growth prospects.

Taking a strategic approach to regulatory reform on things like green growth is a key Brexit opportunity, but we’re in danger of letting that slip away for political rather than economic reasons.

Instead, we need to take a lead from the Government’s own Vallance review into securing possible prizes in five high-growth sectors.

Their approach, serious, reflective and considered, is one we should mirror when it comes to EU laws.

This is a moment for the UK to wave its flag and tell the world that it truly is open for business – to Europe and beyond. Unlocking the NI Protocol and thinking strategically when it comes to regulatory reform will enable firms to forge more avenues for growth. Those opportunities are ours to claim, but they’ll quickly disappear if we continue to put party politicking over economic expedience.

Beckie Hart is CBI regional director for Yorkshire & Humber