CBI to make economic case to remain in the EU, after member mandate

March 15, 2016 @ 8:02 by Alison Cowie

80 per cent of CBI members think being in EU is best for their business, according to ComRes survey

The CBI’s Chairmen’s Committee has taken the final step in endorsing the leading business group’s mandate to make the economic case for the UK to remain in the EU.

It comes after the CBI reaffirmed its member mandate following a rigorous governance process through the organisation’s ‘business parliament’ and publication of a new member survey carried out by polling company ComRes.

The survey had 773 responses among small, medium and large firms across the whole of the UK. It reveals 80 per cent of CBI members, when weighted to reflect its membership – including 71 per cent of small and mid-sized business members – believe that the UK remaining a member of the EU would be best for their business. Overall, 5 per cent say it is in their firms’ best interests for the UK to leave the EU, with 15 per cent unsure.

The survey forms part of a thorough consultation process with the CBI’s governance network of three national councils (Scotland, Wales and Northern Ireland), nine regional councils, eleven standing policy and sector committees. This culminated in an endorsement from the Chairmen’s Committee – the CBI’s highest policy making body – which met on Monday. This round of 24 separate consultations has taken place over the last three weeks, with a clear majority in each meeting backing the business case to remain in the EU.

Sarah Glendinning, CBI North East director, said: “The message from our members is resounding – most want the UK to stay in the EU because it is better for their business, jobs and prosperity.

“Walking away makes little economic sense and risks throwing away the many benefits we gain from being part of the EU.

“Our members tell us that having guaranteed access to a tariff-free market of 500 million people, and to more than 30 global trade deals covering 50 countries, are significant advantages that outweigh the frustrations.

“A minority of members want to leave the EU. We will continue to respect and reflect their views and campaign for EU reform to get a better deal for all businesses.

“However, most CBI members are unconvinced that alternatives to full membership would offer the same opportunities. We have yet to see those who seek to leave the EU present a compelling vision of what this would mean for jobs and growth.

“We will not align ourselves with any campaign. Though prosperity, jobs and future living standards matter to many people, we recognise there will be other considerations. It is not our place to tell people how to vote, but the CBI will play its role in making the economic case for remaining in the EU.”

On securing the CBI’s mandate and its role in the EU referendum, Paul Drechsler, CBI president, said:

“Having secured a strong mandate from our members, the CBI will continue to play a role in shining a light on the business and economic issues at stake. We will seek to inform the public debate focussing on the implications for jobs, prices and prosperity.

“The vast majority of our members tell us their businesses have gained from being in the EU. We have consulted every one of the CBI’s councils in the last three weeks, involving firms of all sizes and sectors across the UK. All councils agreed, many unanimously, that the CBI should make the economic case for remaining.

“The referendum is a matter for the British people and it’s clear that the public will base their decision on a range of factors. The business and economic case is only one part of the story, but it is a vital one.

“The job now for the CBI and business leaders across the UK is to set out the arguments as clearly as possible for the British public. The CBI speaks on behalf of members who employ nearly seven million people and we’re proud to represent entrepreneurs, ambitious growing firms, smaller companies and some of the UK’s biggest employers, spanning all sectors across the UK.”

Other key survey findings:

77 per cent of CBI member organisations say that remaining in the EU would be in the best interest of the wider UK economy, while 6 per cent say that leaving the EU would be in the best interest of the UK economy.

CBI member organisations that operate inside the EU (excluding the UK) are more likely to say that a ‘remain’ result is in their best interest than those who do not – 83 per cent against 76 per cent.

CBI members based in London are the most likely of all UK regions to say that a ‘remain’ result would be in the best interest of their organisation (85 per cent). Members in the Midlands and East of England are the least likely (75 per cent), although a strong majority still say that remaining in the EU would be in the best interest of their organisation

73 per cent of trade association respondents think it would be in the best interest of the UK economy to remain inside the EU. 27 per cent are unsure and 0 per cent want the UK to leave.

CBI member organisations that invest in (84 per cent) and export to the EU (82 per cent) are marginally more likely to say a ‘remain’ result would be in the best interest of their organisation than those who do not (77 per cent).

In terms of sector breakdown, 77 per cent of CBI members in the construction sector think it would be best for their organisation if the UK stayed in the EU – for production (manufacturing, utilities etc.) the figure is 78 per cent. Other notable returns include members from the financial and insurance sectors (81 per cent), professional scientific and technical (83 per cent), and education (83 per cent).

Comparable to the findings above, large organisations within the CBI membership are more likely than SMEs to say that in the upcoming referendum on the UK’s membership of the EU, remaining in the EU would be in the best interest of the UK economy as a whole (81 per cent v 65 per cent). 15 per cent of SME members say that leaving the EU would be in the best interests of the UK economy, compared to 4 per cent of large members.