Business groups issue urgent plea for Brexit trade deal

The CBI and 71 separate trade associations and professional bodies said a deal would “turbocharge” business preparations for Brexit and increase confidence in the UK as a place to invest, as well as helping to ease implementation of the Northern Ireland Protocol.

A joint statement says: “Now is the time for historic political leadership. With compromise and tenacity, a deal can be done. Businesses call on leaders on both sides to find a route through.

“The clarity that comes with an ambitious deal will have an instant impact on firms’ efforts to prepare.

“It will help investment by removing the threat of tariffs and quotas, and it will catalyse confidence through enhanced customs co-operation while making a precious data agreement possible, vital for services industries which make up 80% of the UK economy.

“Businesses are doing what they can to prepare for Brexit. But firms face a hat-trick of unprecedented challenges: rebuilding from the first wave of Covid-19, dealing with the second, and uncertainty over the UK’s trading relationship with the EU.

“With each day that passes, business resilience is chipped away. A swift deal is the single most effective way to support recovery in communities across Europe.”

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said: “The pandemic has caused immense damage to UK Automotive, costing thousands of jobs and soaking up precious resource.

“A second blow of tariffs, which would instantly raise prices and destroy competitiveness, would be devastating so we need a deal now – and not just any deal, one that is as free in reality as it is on paper.

“Only an ambitious deal that delivers for this critical sector will safeguard livelihoods and drive investment into the new skills, facilities and technologies so integral to delivering a zero-carbon future for the UK.”

Dr Laura Cohen, chief executive of the British Ceramic Confederation, said: “With 57% of members’ exports going to the EU, a deal is vital.

“Reaching a deal with the EU is imperative in order for the sector to be able to bounce back and continue tackling the challenges of decarbonising whilst staying internationally competitive.”

Ian Wright, chief executive of the Food and Drink Federation, said: “It is vital we secure a deal which enables the UK’s food and drink manufacturers to feed the nation and maintain UK food security.

“No deal would cause deep damage to the UK’s largest manufacturing industry and put at risk the choice, quality, and affordability of food and drink available to UK shoppers and consumers.”

A government spokeswoman said: “The EU have refused to negotiate seriously for much of the last month. The talks are over unless the EU makes clear that they are fundamentally changing the position set out at the European Council, therefore it is vital that businesses get ready for January 1 with arrangements that are based on simple principles of global free trade.

“In the weeks ahead, the Government will intensify its already extensive engagement with businesses so we can hit the ground running on January 1, 2021, and seize new opportunities.”