Business chief says repairing Brexit’s economic damage should be Burnham’s priority as Labour reconsiders EU red lines

Business calls for EU review

Haviland said Burnham should focus first on Brexit’s economic effects as he reconsiders Labour’s limits on closer ties with the EU. She said the evidence shows businesses do not feel the current arrangement is working.

Companies initially expected the new rules to be difficult, Haviland said, but conditions had not eased as they had anticipated. At Labour’s conference in Liverpool last month, Burnham said Brexit had done “more harm than good” and promised to reassess Britain’s relationship with the EU.

Burnham has opened the door to options including rejoining the bloc. This week, he said failing to seek a better EU deal would be a “major dereliction of duty”.

BCC to consult its members

Haviland said the organisation would set out options spanning the current arrangement to the most far-reaching choices, then consult its chambers and partners. She described the matter as economic rather than political.

Pressure on business costs

She said companies wanted measures to ease costs, rather than a budget that simply maintained the status quo. Haviland called for action on energy bills, business rates and taxes on employment to help firms recruit more young people.

Haviland said about 40% of an energy bill reflects energy itself, while the other 60% relates to tax. She said the government could reduce some of that tax burden.