Brexit is happening and talks have started in Brussels. But many have expressed concerns that the economy has been put to the back of the government’s agenda. As it seems that jobs, living standards and the UK’s dairy industry may be at the top. We delve in to suggest why the government needs to prioritise economy in Brexit negotiations.
Both of the major political parties conducted election campaigns seemed to ignore the concerns of businesses. This was also further aggravated with the rising concerns about creating a strong post-Brexit economy. Michael Izza, ICAEW’s chief executive, has suggested that if the government plans to rejuvenate the economy then the voice of business needs to be more prominent in their plans.
This statement comes after research by the ICAEW was released. This envisaged how the previous financial year produced the smallest budget deficit in cash and GDP for almost 10 years. The ICAEW has also concluded that overall damage may have been caused to Britain’s economy by the slowing GDP growth.
The Brexit negotiations have created a level of uncertainty, which is preventing long-term changes to the tax and regulatory systems. By putting business and economy to the forefront of the government’s agenda, a level of optimism and certainty can be created. Thus, also creating confidence and showing the rest of the world that Britain is an ideal place to do business. As well as to invest and trade. The economic progress that was created over the last two parliaments would be put at risk if this is not done.
No one knows this more than the biggest business groups in Britain. Such as the British Chambers of Commerce, Confederation of British Industry and the Institute of Directors. Hence why they have penned an open letter to the government to urge them to prioritise the economy in Brexit talks.