May moves to dispel Brexit anxieties
British PM promises to increase research investment in UK
Prime Minister Theresa May promised Monday to boost research investment as she sought to reassure business leaders nervous about the “cliffedge scenario” of Britain leaving the European Union.
May told a Confederation of British Industry ( CBI) conference that her government would invest an extra £ 2 billion a year ($ 2.5 billion, 2.3 billion euros) in science research and development by 2020.
She also committed to the plans of the previous government to introduce a 17- percent rate for corporate tax – the low- est level in the G20.
“Today, Britain has firms and researchers leading in some of the most exciting fields of human discovery,” she said. “We need to back them and turn research strengths into commercial success.”
Businesses voiced concerns to the prime minister about the impact of Britain’s departure from the EU, and the uncertainty surrounding the country’s future trading terms with member states.
“Businesses are inevitably considering the cliff- edge scenario – a sudden and overnight transformation in trading conditions,” Paul Drechsler, CBI president, said Monday.
“If this happens, firms could find themselves stranded in a regulatory no man’s land.”
Others echoed the business chief’s concerns.
“I’m not too optimistic about Brexit,” a representative from German engineering firm Bosch told AFP, speaking on condition of anonymity.
May acknowledged that Brexit “creates uncertainty for business” and that they “need some clarity.”
The prime minister has so far refused to outline what she will demand from EU leaders, but promised to update business on plans that did not risk “prejudicing the negotiation to come.”
“If we approach the difficult negotiations to come in the right way, with the right spirit, we can strike a deal that’s right for Britain and right for the rest of Europe too.”
One of her government’s top priorities would be to secure an “early agreement” on the status of British nationals in Europe and EU nationals in Britain.
The continued availability of a European workforce is a key concern for British businesses.
May spooked some industry leaders last month when she slammed “dysfunctional” markets and warned tax- avoiding multinationals she was “coming after” them during her first keynote speech as leader.
Ryan Bourne, head of public policy at the Institute of Economic Affairs, said the speech signaled an “ideological change” in the direction of the Conservative Party towards a more interventionist approach.