CBI call for soft Brexit
TUC back warning to PM May PRIMARK SALES ZIP UP
BIG business and the trade union movement have both warned Theresa May that the economy needs a slow transition out of the European Union to protect jobs and the economy.
Employers organisation the CBI received rare backing from the TUC last night for a call to make sure that the UK stays inside the EU single market and a customs union until a final deal is in force.
In a crucial intervention in the Brexit debate, CBI director-general Carolyn Fairbairn said the prospect of serious disruption from a “no deal” outcome means businesses are changing plans and slowing investment now.
The Government must put living standards and jobs first, she added.
Fairbairn said: “Instead of a cliff edge, the UK needs a bridge to the new EU deal. Even with the greatest possible goodwill on both sides, it’s impossible to imagine the detail will be clear by the end of March 2019. This is a time to be realistic.
“Our proposal is for the UK to seek to stay in the single market and a customs union until a final deal is in force. This would create a bridge to the new trading arrangement that, for businesses, feels like the road they are on.
“Making two transitions – from where firms are now to a staging post and then again to a final deal – would be wasteful, difficult and uncertain in itself. One transition is better than two and certainty is better than uncertainty.”
Unusually, the business bosses found backing from TUC general secretary Frances O’Grady who said a transitional arrangement that will keep jobs and rights at work safe was vital.
She said: “A no-deal Brexit in 2019 would be devastating for jobs and it would leave hard-won workers’ rights in danger of being watered down.
“An arrangement that keeps the UK in the single market for the period of the transition will keep workers’ rights safe and protect jobs by keeping British exports free from tariffs and bureaucratic barriers.” Sales at budget fashion chain Primark jumped 20 per cent over the past 16 weeks. The increase was driven by new branch openings, the strong Easter and the weak pound, which boosted the value of Primark’s sales from overseas stores.
Owners Associated British Foods upped their full year outlook as they also had strong trading in their sugar producing arm. Nicholas Hyett, analyst at Hargreaves Lansdown, said: “Primark’s disposable fashion at amazing prices remains popular with shoppers across Europe, with sales growth many high street retailers would kill for.”