British business leaders: The economic case to stay in the EU is overwhelming

British business community responded to increasing anti-EU political rhetoric. Does British business community has a potential to significantly influence the debate on the future of UK in the EU and how?

Robert Ackrill, Professor, Division of Economics, Nottingham Business School, Nottingham Trent University

This article in the Independent is extremely interesting. It is true that, until recently, senior UK business leaders have kept a low profile in the in-out debate, indeed about the EU generally. What we have seen during and since the local elections last month however is, first, a rise in support for the UK Independence Party (UKIP), second, the euro-sceptics in the Conservative Party taking this opportunity to become much more vocal about a referendum, notionally at least to counter the rising number of people voting for UKIP, and third, as a result business leaders thus starting to challenge the very negative tone of the arguments as regards the UKs future membership of the EU. In short, I think UK business leaders are finally seeing the popular sentiment shifting so much away from continued EU membership that they have felt they had to speak out.

One major problem these business leaders face is being heard, given that the dominant position of much of the media in the UK – but especially the newspapers – is strongly euro-sceptic. Thus the involvement of people such as Richard Branson, who have media recognition already, I think is very important. More important, I believe, is their potential to engage with Conservative Members of Parliament at a personal level. The Conservative Party has always been seen as the main pro-business party, so the exploitation of that to gain access to MPs directly will be critical.

What these business leaders are also capable of is understanding exactly how the EU works and how the UK Government should be promoting UK interests from within the EU. Another recent article in the Independent had an EU Commissioner stating that many British MPs simply do not understand the EU – a view I have held for many years.

The entire tone of the ‘debate’ in the UK is about ‘us and them’. This is a complete misrepresentation of what being an EU member is – by definition, as a full EU member it is not ‘us and them’, only ‘us’. My hope is that, with more and more business leaders getting involved in the debate, it will force more MPs to face up to their lack of understanding. By doing so, I hope they will have to realise that through the UKs Permanent Representatives, Ministers in meetings of the Council of the European Union, and MEPs in the European Parliament, we can have a powerful say in what happens in the EU. Were we to leave, that would be lost. But in order to understand what an exit would cost us, MPs must first be made to realise what membership offers. And these business leaders are in a fantastic position to convey that message.

Ian Bache, Professor of Politics, University of Sheffield

The short answer is that I think the British business community has huge potential to influence the debate on the future of the UK. In a context where jobs and growth are at the top of the agenda, it will be very difficult for politicians to ignore the business view that exiting the EU would lead to the loss of jobs and damage UK competitiveness. Of course, it will be interesting to hear whether the business community as a whole shares a similar view. Your linked article illustrates a very significant business grouping that is pro-EU. In this report they raise the issue of the potential impact of EU regulation on the UK financial sector, which remains a contested issue. Given the importance of the financial sector to the British economy, EU statements from leading figures in this sector may be particularly powerful. But in short, there is no doubt that the business community plays an important role in shaping Britain’s approach to the EU.

Iain Begg, Professorial Research Fellow, European Institute, London School of Economics and Political Science

Yes, British business has the potential to shape the debate on the UK and Europe, but it does not necessarily speak with a single voice. Major exporters, such as in the car industry, will be concerned to maintain market access and thus to keep the UK in the single market, as will those that have important supplier links in other EU countries. Businesses with a much more domestic market are likely to be more ambivalent about the EU because they associate (rightly or wrongly) much of the regulatory burden they face with ‘Brussels’ and may be more supportive of UK withdrawal. The financial sector tend to view itself as global in its positioning and, while anxious to avoid stifling financial regulation, might be more relaxed about a looser relationship between the UK and the rest of the EU.

Tim Bale, Professor, Chair in Politics, Queen Mary, University London, Author of the book: The Conservative Party from Thatcher to Cameron

It does – but only if it gets into the game soon and speaks with one voice. Both of these conditions are unlikely to be met: business is reluctant to come out too openly lest it be seen to be throwing its weight around; it also wants reform (in the sense of deregulation) and believes that Cameron might be able to get it in a renegotiation; finally, some business people believe that the UK would be better off out as long as it can still have access to the single market.