Repairing Brexit economic damage should be Burnham’s top priority, business chief says

Repairing the economic damage caused by Brexit should be Andy Burnham's top priority as he considers revisiting Labour's stance on EU membership, according to Shevaun Haviland, director general of the British Chambers of Commerce (BCC). Haviland emphasized that the UK's current trading relationship with the European Union is detrimental to businesses. Haviland noted that over half of the business leaders surveyed by the BCC believe the Brexit deal negotiated by the previous government has not benefited their operations. She pointed out that initial challenges following the implementation of new trade rules have not eased, contrary to expectations. Economic experts estimate that Brexit has cost the UK economy up to £240 billion, with national income per person being 6% to 8% lower than it would have been if the UK had remained in the EU. Long-term projections suggest a sustained impact equivalent to around 4% of GDP. Burnham recently stated that Brexit has caused more harm than good and expressed willingness to reassess the UK's relationship with the EU. He suggested options such as fully rejoining the bloc and warned that failing to seek a better arrangement with the EU would constitute a major failure. Haviland stressed that the government must consider the frustrations of businesses regarding Brexit. The BCC plans to consult its 50,000 members, employing over six million people nationwide, on potential approaches to Britain's relationship with the EU, ranging from maintaining the status quo to full reintegration. Nova Fairbanks, head of the Norfolk Chambers of Commerce, mentioned that some pro-Brexit business leaders acknowledge the economic toll of Brexit. She noted that those opposed to Brexit remain steadfast in their belief that the UK needs to be closer to Europe. Businesses are facing increasing pressure due to rising energy costs and the ongoing conflict in the Middle East. Haviland urged Chancellor John Healey to implement bold measures in the upcoming budget to support firms, despite concerns within the government about public finances and bond market instability. She argued that a cautious approach would not suffice, emphasizing the need for actions that alleviate financial burdens and stimulate economic growth.