Business leaders have urged the Government to be ambitious on EU market access when it publishes its negotiating mandate for EU talks later this week.

In a new survey of over 900 members of the Institute of Directors, directors of small and large firms were just as likely to view continued Single Market access as important to their organisation, and respondents were even more emphatic about the wider benefits for the UK economy:

• Two-thirds (64%) of directors say EU market access is important to their organisation, and 8 in 10 think it is important for the economy. The latter is equally true of companies that do not export.
• A majority of business leaders think the UK should have some flexibility on setting different import tariffs to the EU from next year, although only 1 in 5 want to completely move away from the EU on tariffs.
• Only a quarter believe there is enough time for the UK to negotiate a satisfactory new relationship, and for businesses to adjust by the end of the transition period next January.

Securing post-Brexit labour mobility was the top priority for directors surveyed as the UK heads into the negotiations, although this will be substantially different from the current free movement rules, given the Government’s new immigration policy.

Across goods and services, by nearly two to one directors favour regulatory alignment in order to deliver ease of continued market access over being able to diverge from EU rules. Views were more mixed on the approach to import tariffs, where only a third called for full alignment, while one in five thought the Government should prioritise total control and flexibility.

Allie Renison, Head of Europe and Trade Policy at the Institute of Directors, said:

“The Government has set out clear political guiding lines for the Brexit negotiations. Within these, it has to be ambitious in pursuing the space where market access can be maximized for businesses. This is not a one-size-fits-all negotiation, the benefit of regulatory alignment does vary by sector, so the Government must show that it is prepared to work with business on the detail.

“Adjustment is inevitable, but it has to be delivered in a balanced way, with cooperation on implementation to ensure any changes are sustainable. Given that uncertainty over our trading status with the EU continues to be a top concern facing directors, getting this balance right is critical to 'Global Britain' succeeding at the first hurdle.”

Full survey results

938 respondents, conducted between 31 Jan – 18 Feb 2020.

How important or unimportant is continued ease of trade access to the EU and Single Market?

For your organisation:

For the UK Economy:

What is your preference for the UK’s approach to EU Single Market rules on goods?

Of those who prioritise EU market access and alignment on goods, would that preference remain if it (also) meant continuing to align to EU rules in areas like employment, health/safety, environment and the competition?

What is your preference for the UK’s approach to EU Single Market rules on services?

Of those who prioritise EU market access and alignment on services, would that preference remain if it (also) meant continuing to align to EU rules in areas like employment, health/safety, environment and the competition?

What is your preference for the UK’s approach to import tariffs after Brexit? 

What do you consider to be the most important priorities for post-Brexit negotiations with the EU?

Which of the following factors, if any, are having a negative impact on your organisation?

Which of the following statements most closely fits your view?