British businesses want the government to seize back powers from Brussels to stop them being swamped in red tape, a new poll reveals today.
The findings come in the first major survey of firms to be conducted after David Cameron’s speech on Europe in January, when the Prime Minister said he wants to renegotiate Britain’s relationship with the European Union and promised an in-or-out referendum by the end of 2017, if the Conservatives are still in power.
The survey of more than 4,000 firms by the British Chambers of Commerce (BCC) shows support among 64pc of businesses for remaining in Europe – but only if the UK government can wrest back from the eurocrats the power to set the rules here on employment law and health and safety.
Restricted: UK businesses want Cameron to scrap EU laws on employment law and health and safety
‘From the point of view of red tape, Brussels is a beast that has gone completely out of control,’ said John Longworth, director general of the BCC.
‘In the food and agriculture sectors, 90percent of new legislation here comes out of Europe. The British government has introduced a ‘one-in-one-out’ rule so that when a new regulation comes in, an old one must go, but they are powerless about the legislation coming from the EU.’
According to the survey, a mere 15pc of firms feel ‘positive’ about keeping the UK’s relationship with Europe unchanged, while more than four out of ten believe sticking with the status quo will harm their company and the UK economy.
Almost 20 percent want Britain to withdraw totally from the EU, believing the disadvantages of all the rules and regulations imposed by Brussels outweigh the benefits of a single market.
A third would like to see Britain pull out but then draw up a new trade agreement with the EU.
‘British business want to stay in Europe, but they want a different relationship with Brussels,’ Longworth said.
‘We are at a disadvantage as things stand because the EU internal market was designed to benefit Germany and it is mainly for manufactured goods, not services, which make up 70pc of our economy.’
German Chancellor Angela Merkel and Prime Minister David Cameron, who has promised a referendum on Europe if his party are in power in 2017
He added that the UK could suffer disproportionately from the new EU Financial Transactions Tax championed by Berlin and Paris, because of the strength of our financial services sector.
‘We need to iron out these structural disadvantages for the UK,’ he said.
‘Cameron is in a stronger position to renegotiate than many think because the UK is Germany’s largest export market, so when he sits down with the German chancellor Angela Merkel, he is in a good bargaining position.’
Firms complain they are drowning under a flood of EU-inspired red tape on employment, health and safety and the environment, saying it is imposing high costs and holding back their plans to grow.
High profile examples include the Working Time Directive that limits the number of hours an employee can work.
‘This does not just affect small firms, it affects medium and even large ones,’ Longworth said.
‘Multinationals have whole departments devoted to dealing with it, at very significant cost.’
‘Our poll is based on a very large number of businesses of all sizes, in all sectors, from around the country and it is very clear.The strongest finding is that businesses support the PM’s position of renegotiating our relationship. It is becoming more and more apparent that the status quo is not an option.’
The findings come in the first major survey of firms to be conducted after David Cameron’s speech on Europe in January, when the Prime Minister said he wants to renegotiate Britain’s relationship with the European Union and promised an in-or-out referendum by the end of 2017, if the Conservatives are still in power.
The survey of more than 4,000 firms by the British Chambers of Commerce (BCC) shows support among 64pc of businesses for remaining in Europe – but only if the UK government can wrest back from the eurocrats the power to set the rules here on employment law and health and safety.
Restricted: UK businesses want Cameron to scrap EU laws on employment law and health and safety
‘From the point of view of red tape, Brussels is a beast that has gone completely out of control,’ said John Longworth, director general of the BCC.
‘In the food and agriculture sectors, 90percent of new legislation here comes out of Europe. The British government has introduced a ‘one-in-one-out’ rule so that when a new regulation comes in, an old one must go, but they are powerless about the legislation coming from the EU.’
According to the survey, a mere 15pc of firms feel ‘positive’ about keeping the UK’s relationship with Europe unchanged, while more than four out of ten believe sticking with the status quo will harm their company and the UK economy.
Almost 20 percent want Britain to withdraw totally from the EU, believing the disadvantages of all the rules and regulations imposed by Brussels outweigh the benefits of a single market.
A third would like to see Britain pull out but then draw up a new trade agreement with the EU.
‘British business want to stay in Europe, but they want a different relationship with Brussels,’ Longworth said.
‘We are at a disadvantage as things stand because the EU internal market was designed to benefit Germany and it is mainly for manufactured goods, not services, which make up 70pc of our economy.’
German Chancellor Angela Merkel and Prime Minister David Cameron, who has promised a referendum on Europe if his party are in power in 2017
He added that the UK could suffer disproportionately from the new EU Financial Transactions Tax championed by Berlin and Paris, because of the strength of our financial services sector.
‘We need to iron out these structural disadvantages for the UK,’ he said.
‘Cameron is in a stronger position to renegotiate than many think because the UK is Germany’s largest export market, so when he sits down with the German chancellor Angela Merkel, he is in a good bargaining position.’
Firms complain they are drowning under a flood of EU-inspired red tape on employment, health and safety and the environment, saying it is imposing high costs and holding back their plans to grow.
High profile examples include the Working Time Directive that limits the number of hours an employee can work.
‘This does not just affect small firms, it affects medium and even large ones,’ Longworth said.
‘Multinationals have whole departments devoted to dealing with it, at very significant cost.’
‘Our poll is based on a very large number of businesses of all sizes, in all sectors, from around the country and it is very clear.The strongest finding is that businesses support the PM’s position of renegotiating our relationship. It is becoming more and more apparent that the status quo is not an option.’