Member Article

North East business fear risks of EU exit, survey reveals

North East businesses are concerned over the impact for growth and exports if the UK leaves the European Union, according to results of a survey conducted by the North East Chamber of Commerce survey.

A majority of those polled said they currently plan to vote in favour of staying in the EU in the planned referendum.

However, nearly half say that the results of the Prime Minister’s renegotiation of Britain’s membership could yet sway the way they plan to vote.

The survey showed 38% of NECC members believe leaving the EU would have a slight or strong negative impact on growth, with 10% reckoning the effect would be positive. 36% of respondents forecast a slight or strong negative impact on exports and international trade from exit, with only 7% predicting these aspects would be improved.

Overall, 61% of respondents said they would vote to stay in the EU if a referendum was held tomorrow, with 30% saying they would vote to leave. But 49% of members said it was very or somewhat likely that the outcome of the Prime Minister’s renegotiation would affect the way they vote when the referendum is held.

55% cited reduced regulation as a reform that would have a positive impact on their business, with 64% saying greater powers for the UK Parliament to block EU legislation should be a leading focus of the renegotiation.

NECC Director of Policy Ross Smith said: “These results show that while there is not a uniform business view on the issue of EU membership, many of our members see significant risks from a possible exit.

“The impacts that our members have identified would clearly have a broader effect on investment, jobs and wealth in the North East. It’s imperative that these considerations are front and centre of this debate, as it would be foolish to ignore the impact on private sector growth and our renowned export record.

“But businesses also see opportunities to get a better deal from the renegotiation process and reducing the regulatory burden must be a priority for the Prime Minister.”

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