Now is the time to cut Brussels red tape say business leaders

While business groups stressed the benefits of being part of a single market they expressed concern at the cost of regulation.

In his speech yesterday the Prime Minister called for further work to complete the European single market in sectors such as energy and services and for smaller companies to be given freedom from EU rules.

He also criticised “complex labour rules” for hindering European competitiveness.

Stuart Anderson, group managing director at manufacturer Pegler Yorkshire, said: “Personally, I think this is probably a good debate to have because of the legislation we feel that is coming out of Brussels and the cost of being part of the single market versus the benefits it gives us.

“It’s probably not helpful that the US has joined the debate. They seem to have a preference for us staying as part of the EU which is probably going to pollute the conversation we have.”

Before his speech, Mr Cameron had faced warnings that even raising the possibility of a British exit from the EU could have a chilling effect on international companies considering investing in this country. Business groups yesterday stressed, however, the potential benefits to the UK economy of a reformed European Union.

Richard Wright, executive director of Sheffield Chamber of Commerce, said: “We see many more advantages to the UK staying in the EU than pulling out. Not only is it a large internal market but we need to be part of an economic entity that can interact on a comparable basis to the other economic blocks like America and China and the Middle East.

“I don’t class this as re-negotiating our ‘terms’ – to me it is part 
of the continuous process between any ongoing partners. I bet France and Germany discuss these things just as much as we do.

“To me the big problem with Brussels is their culture. The raft of legislation that comes out too often adds bureaucracy, cost and not enough of the objectives are focused on making us better economically.”

But while business backed the prospect of discussions, there was a clear message that the UK should be focused on remaining in a reformed EU rather than rushing for the exit door.

Kenton Robbins, regional director for the Institute of Directors in Yorkshire said: “It seems logical that the UK renegotiates its terms and existing deal in the EU. I do, however, have some concerns about the impact for business in the region should we not be at the heart of Europe.

“A negative vote could have an adverse impact on certain projects and businesses in Yorkshire who have benefited from our strong trading links.

“Europe is our nearest trading partner and as such generates a lot of direct and indirect business for the UK and Yorkshire. We also have a lot of European businesses in the region that have offices or UK bases here.

“There are also the implications for projects such as the Siemens renewables project in East Yorkshire which could ultimately lead to a lot of growth, regeneration and new jobs that would have a far-reaching impact in the rest of the region. “

John Cridland, director-general of the Confederation of British Industry, welcomed the Prime Minister’s recognition of the benefits of being members of “what must be a reformed EU”.

“The EU single market is fundamental to Britain’s future economic success, but the closer union of the eurozone is not for us,” he said.