Member Article

North East business uncertain over EU membership

Businesses remain uncertain over the future of the UK’s relationship with the European Union, according to a survey by the North East Chamber of Commerce.

As voters across Britain and Europe head to the polls today, the NECC asked members to react to how different scenarios concerning the UK’s EU membership could impact the prospects for their company.

Renegotiation of Britain’s membership and remaining within the EU remains the most positively-viewed scenario. 51% of firms think remaining in the EU, but with specific powers transferred from Brussels to Westminster, would have a positive impact.

Almost 13% thought it would have a negative impact and 20% of those replying said that they didn’t know.

Almost 69% of regional firms thought outright withdrawal from the European Union would have a negative impact on business, with just below 7% believing it would prompt positive change.

Over half of firms responding (52%) said that withdrawal from the EU with renegotiated trade agreements would be harmful to business, with 20% of firms thinking the opposite.

Remaining in the EU and integrating further with member states saw 19% of respondents reply that they didn’t know, with 34% thinking it would be negative and 28% positive.

50% of firms thought that changing nothing would have no impact, with 13% considering it a positive move and 18% negative. Of the firms surveyed, 17% didn’t know.

NECC policy adviser, Lucy Humphreys, said: “These results demonstrate that businesses are starting to cool on proposals for a renegotiated relationship with Europe, but the vast majority remains opposed to a UK withdrawal from the EU.

“The on-going recovery, coupled with less frantic media headlines around the state of the eurozone may have had an impact, but it appears that businesses are less concerned about the UK’s relationship.

“It’s also apparent that our firms want to remain in the EU and are against leaving it in any way, shape or form.

“The amount of businesses saying that they don’t know how these potential scenarios will affect the UK’s future should set alarm bells ringing within Britain’s political parties. They must ensure that debate over Britain’s future place in Europe must be rooted in hard evidence and good information and not in political point-scoring or potential scare-mongering.”

This was posted in Bdaily's Members' News section by Tom Keighley .