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UK – CBI head calls for urgent Brexit transition deal which prioritises jobs

22 January 2018

In a speech today, Confederation of British Industry Director-General Carolyn Fairbairn called for a status quo, jobs-first transition deal to be nailed down in the next 70 days to ‘remove the cliff edge for firms.’

Fairbairn said that time is running out and businesses urgently need decisions to protect UK jobs and growth.

“Clarity, flexibility and urgency are vital to get a ‘good Brexit for Britain’, requiring a fundamental change in approach,” Fairbairn said. She added that a united UK view is needed by April - allowing talks to begin that month and unambiguous heads of terms agreed with the EU by October.

The Recruitment & Employment Confederation said it endorsed the call for a “jobs-first transition deal to be nailed down in the next 70 days”.

REC chief executive Kevin Green commented, “We support the notion that the government should be under a 70-day deadline to provide a transition deal that prioritises jobs. That will be a year on from when Article 50 was triggered and it is time that we see sufficient progress for the sake of employers and workers in this country.”

“Businesses have been kept waiting too long for the government to provide clarity and our data shows that employer confidence in the economy is really suffering because of this, which is starting to impact hiring plans,” Green said. “Recruiters tell us that their clients are already moving jobs abroad and this will increase if they don’t feel reassured. Large businesses do workforce planning at least a year ahead and it’s not feasible to think they will hold off on decision-making any longer.”

“It’s also vital that EU workers in the UK are told what practical actions they have to take to get their right to work here confirmed. It is not clear right now and they will be feeling frustrated. Many sectors across the economy, from healthcare to warehousing, rely heavily on EU workers and must be able to access the people they need – otherwise employers could end up moving to other countries, reducing their services or even shutting down,” Green said.

During the speech Fairbairn also said that neither the Canada nor Norway models represent the best solution for business or for Britain.

“A Canadian model delivers control over immigration, some regulation and trade policy,” Fairbairn said. “But it won’t work for the UK, or the EU, as the Canadian deal was built around a premise of taking two countries wide apart - in geography, standards and trade – and bringing them closer together. Canada does less than 10% of its trade with the EU, whereas the EU is our largest trading partner. We can’t afford higher barriers to trade. Nor can the EU.”

The UK’s Trades Union Congress also commented on the CBI’s view on Brexit, which rejects a Canada-style deal as bad for Britain.

TUC General Secretary Frances O’Grady said, "A Canada-style Brexit deal would be bad for jobs, bad for public services, and bad for rights at work. The government should put all options on the table, including single market membership, which is the best option we see to protect jobs and safeguard workers’ rights."

For Fairbairn’s full speech, click here.