Business leaders demanding a breakthrough over Brexit

Lack of progress is proving harmful to companies

Business leaders in Scotland have united with their German counterparts to demand a breakthrough in Brexit negotiations.

The lack of progress in “businesscritical” areas such as the rights of EU workers is causing “great uncertainty” for firms, they say. The intervention from an alliance of the Scottish, British and German chambers of commerce comes as negotiators sit down for the third round of talks.

As well as the future of non-domiciled workers on either side of the channel, there are “hundreds of practical and technical issues” that have not been resolved, including customs arrangements.

German businesses are already “shifting investments away from the UK” in the wake of a lack of assurances over trade barriers, such as worker movement restrictions, extra bureaucracy, higher taxes and stricter border controls, according to the Association of German Chambers of Industry and Commerce (DIHK).

Martin Wansleben, DIHK’s chief executive, said: “The first effects of the Brexit vote are already being observed.

“German exports to the UK were down by 3% the first half of this year compared to the first half of last year, whilst exports to the EU increased, with 6% in the same period.”

The business alliance says that “fundamental issues” must be addressed “as soon as possible” to give companies certainty over future trade.

Liz Cameron, director of the Scottish Chambers of Commerce, said: “As negotiations recommence, we urge our politicians to ensure quick identification of practical solutions to the business challenges our members have identified, and guarantee successful trading relationships can continue to flourish across Europe and beyond.

David Davis, the Brexit Secretary, is said to be frustrated at his EU counterpart’s insistence that Britain’s “divorce bill” is sorted before future trade arrangements can be discussed.

The EU has made clear that expats’ rights, the financial settlement and the Irish border question are the only topics for the first phase of negotiations.

Speaking ahead of the resumed talks, Mr Davis said: “For the UK, the week ahead is about driving forward the technical discussions across all the issues.

“We want to lock in the points where we agree, unpick the areas where we disagree, and make further progress on a range of issues.

“But in order to do that, we’ll require flexibility and imagination from both sides.”

Pictures: PA/Getty. Martin Wansleben, left, says businesses are feeling the effects of the Brexit vote, while Brexit Secretary David Davis is “frustrated” by the talks.