The challenge to ensure that Brexit works for business

As head of the Vote Leave campaign, one of the most enjoyable events I did during Britain’s EU referendum campaign was a lunch with Roland Rudd from the Stronger In side. Rather than debating the UK’s membership of the EU, we agreed to brief senior executives on why we thought our respective campaigns would win.

It was a good natured discussion, with a remarkable overlap in our analysis — the king of financial PRs even offered me a job once I had inevitably lost. It was typical of the numerous friendly debates held between Remain and Leave business campaigners.

There is no denying that intense emotions and sharp words characterised the referendum. As pressure mounted, tempers flared — an unavoidable feature of a campaign of such significance.

By contrast, the parallel debate between businesses was conducted with a strong spirit of mutual respect. This was exemplified by the sight of John Longworth, the former director of the British Chambers of Commerce and a Leave supporter, calmly sitting beside Mr Rudd while giving evidence to the business select committee, less than two weeks before the referendum.

Some organisations like CityUK backed Remain. Others remained officially neutral, such as the Institute of Directors. Business for Britain, the campaign group I founded in 2013, had a stance of “Change or Go” and, like many British voters, was disappointed with David Cameron’s negotiation. Vote Leave was therefore set up as a campaign rooted in business.

Now Britain is heading for Brexit, groups from all sides need to get around the table again because the voters’ verdict on June 23 was the start of a process. The decisions taken now and the opportunities grasped will shape the destiny of the UK for decades to come.

One of the core messages throughout the campaign was advocating the continuation of tariff-free trade between the UK and the EU. We were therefore delighted whenMarkus Kerber, director-general of the BDI, the German equivalent of the CBI, called on the eve of the referendum for continued free trade between the UK and the EU, stating that it would be “very, very foolish” to impose trade barriers if the UK voted to leave.

Since the referendum, the CBI, the employers’ organisation, has set out “retaining the ease of UK-EU trade that businesses gain from the single market” as a priority for the UK-EU relationship. A broad consensus is therefore emerging on both sides of the debate in the UK, as well as on both sides of the Channel.

This should not be a surprise. Game theory enthusiasts will be familiar with the Prisoners’ Dilemma, where two captives can either choose to work together for mutual gain or attempt to undermine each other and risk losing out altogether. Politicians, business leaders and diplomats on all sides must take this opportunity to build a consensus and forge a post-Brexit relationship where everybody wins.

But our discussions should not be limited to the EU alone. Brexit offers us a chance to redefine our relationship with the rest of the world, to up our game internationally and decide what role, economically and politically, we want to take.

Theresa May used her maiden speech as prime minister on the steps of Downing Street to underline how she wants to “forge a bold new positive role for ourselves in the world, and we will make Britain a country that works not for a privileged few, but for every one of us”.

Most Brexiters have a vision of liberal Euroscepticism, championing free trade around the world which will allow Britain to flourish, rather than being constrained to an outmoded regional trading bloc. We want to see a continued flow of foreign investment into the UK, as well as highly skilled migrants.

Outside the strictures of the EU customs union, Britain has the opportunity to evolve into one of the world’s most dynamic economies, carrying the torch for international trade and co-operation.

There is no question that the UK is exceptionally well placed to reap the long-term rewards of Brexit. The vote to leave has placed Britain at a historic juncture and I am looking forward to returning to Business for Britain as chief executive, alongside our chairman Peter Cruddas, former treasurer of the Conservative party, to campaign for a long-term economic vision that works for business.

While I am disappointed not to be able to take Mr Rudd up on his kind offer, I look forward to working closely with him and other business leaders as we collectively face the challenges and opportunities ahead for Brexit Britain.

[Source: Financial Times]