West Midlands firms still supportive of UK’s EU membership

FIRMS in the West Midlands are still supporting continued UK membership of the European Commission, despite the Prime Minister’s opposition to the nomination of Jean-Claude Juncker as president, new figures reveal.

The margin of West Midlands businesses which said withdrawal would have a negative impact on business remains unchanged from the last quarter in a survey conducted by the West Midlands Chambers of Commerce.

The EU Business Barometer, produced by the Greater Birmingham Chambers of Commerce (GBCC) in partnership with other West Midlands Chambers, involves the views of more than 1,000 businesses from across the region.

The study showed 58% of firms believed that withdrawal from the EU would have a negative economic impact on the UK.

However, there was growing support for EU reform. More than half (54%) believed remaining in Europe with powers repatriated to the UK would have a positive impact, up from 50% in the previous quarter.

Of those responding, 40% of businesses felt further integration into the EU would be negative, while 22% thought it would be economically positive. Over half of small businesses with 1 to 19 employees (56%) see withdrawal as a negative option.

Tim Pile, president of Birmingham Chamber, said: “The European Union is a major trading partner for the West Midlands. The value of exports from the region to EU countries stood at over £11bn in 2013. This has grown by 25% since 2010. Europe is a powerful incubator market for businesses looking to export to longer-haul destinations.

“The West Midlands Chambers 2014 EU Manifesto emphasised the need for MEPs to help represent the local business community in Brussels, minimise unnecessary red tape and communicate the funding opportunities available to region.”

Mike Ashton, chief executive of Herefordshire & Worcestershire Chamber of Commerce, said the Q2 survey revealed that local businesses saw potential withdrawal from the EU as damaging to the British economy.

“The EU remains a crucial trading partner for the UK and it is important that Britain retains access to the Single Market so that local businesses can expand into Europe without having to deal with trade barriers. We urge the government to heed our members’ opinion on this issue and avoid moving the UK closer to the EU exit door,” he said.

Richard Sheehan, chief executive of Shropshire Chamber of Commerce, said: “We have continued to see strong export growth from Shropshire businesses and the EU is a crucial platform for businesses looking to export due to the relative simplicity of trading.

“However, as reflected in the survey results, there are still ongoing issues around bureaucracy which urgently need to be addressed by returning key powers back to Westminster.”

Jane Gratton, deputy chief executive and policy manager at Staffordshire Chambers of Commerce, said: “Europe remains a major export market for businesses in North Staffordshire and arrangements to ensure the free movement of goods and services are valued.  

“However, our exporters need to remain competitive in markets around the globe and the restrictive ‘one-size-fits-all’ policy and regulatory framework in Europe is costly and damaging.”

Ninder Johal, president of Black Country Chamber of Commerce, said: “Black Country businesses want to stay in Europe and trade and any threat to this will hurt our businesses. Our leadership is needed within a strong EU to block red tape and simplify trading for UK businesses.”

Louise Bennett, chief executive of the Coventry and Warwickshire Chamber of Commerce, said: “The vast majority of companies across our patch are not interested in the politics of Europe.

“They are interested in the trade prospects with one of the largest global markets and that is where our concerns lie too. Whatever happens on the political stage, it must not have a negative impact on our trading position with Europe.”