Andy Burnham has been warned that Britain's re-entry into the European Union comes with a major risk, as the Prime Minister has not ruled out a second EU referendum and a reversal of Brexit, which he thinks has "done more harm than good".
Extra paperwork and checks and the delays at the EU border have hurt UK businesses, Nigel Green, the CEO of deVere Group, said. He added that a closer relationship with Europe would be good for the economy.
Investor risk warning
"There’s no question about it," Mr Green said. "But the same changes that make it easier to do business with Europe also make it easier for people, and their money, to move there. Investors need to factor in both."
If the Government does not change its stance on taxation, entrepreneurs and investors would be tempted to leave Britain, and this would be easier for them to do inside the EU, Mr Green suggested.
"We’re already seeing entrepreneurs, senior executives and internationally mobile families seriously considering a move abroad as taxes go up," he said. "It comes up in our conversations every week. If moving around Europe becomes easier, that’s one less obstacle for them. Closer ties with the EU won’t solve problems of the UK’s own making."
Tax burden concerns
"If the tax burden keeps rising and the state keeps growing, we risk losing the entrepreneurs and investors the economy depends on, and we won’t attract new ones to replace them. Wealthy people and business owners have more choice than ever about where they live and invest, and they’ll go wherever they feel most valued," he added.
"Alongside the EU reset, the Government needs to get domestic policy right. This means a competitive tax system, a planning process that doesn’t hold projects up for years, and enough stability for businesses to plan ahead with confidence."
"The UK has huge strengths in its talent, its legal system, and its capital markets. Get both of these right and it can be one of the most attractive places in Europe for capital. Get only one right and it simply becomes easier for people to leave."
Burnham's EU stance
Mr Burnham told MPs yesterday that it would be a "dereliction of duty" not to seek deeper partnership with the EU but said the British public will be the "boss" at every stage of renegotiating the relationship.
"If we are serious about promoting growth, controlling immigration, upholding our values and security, it is a conversation we must have," he said. "Sticking with the status quo is not good enough for Britain. Worse, it would be a major dereliction of duty to turn away."
He added: "Our immediate priority is securing a successful outcome at the summit, and I believe we should then set up a serious dialogue about the different options for our relationship in the long term. At every stage, the British public will be the boss, and I am clear that public opinion currently supports a pragmatic approach like the one I am suggesting."
Mr Burnham said the upcoming talks present "an opportunity to make progress on two crucial issues: boosting UK growth and controlling illegal immigration". He added: "The summit will also be an opportunity to raise our concerns about Made in Europe and it is clear to me that there is an opportunity to make progress in all of these areas. Together, these deals will add the equivalent of over £10 billion per year to the UK economy by 2040, with the potential to add significantly more."
A No. 10 source told PA: "Andy understands why some politicians don’t want to face up to the reality that Brexit has not delivered what they once promised. But it is time for a different conversation about what our long-term relationship should be. Sticking with the status quo and not working relentlessly to secure a good deal that boosts growth would be a major dereliction of duty."
