City firms reluctant to sign up to In campaign in blow to No10
BUSINESS advisers to David Cameron and some of Britain’s biggest companies have refused to sign a letter endorsing continued EU membership, it emerged yesterday.
Several FTSE 100 companies including HSBC, Diageo and Vodafone are expected to back the In campaign today in a joint letter.
However, it has emerged that the letter, which has been circulated by Downing Street, could attract far fewer signatures than initially hoped.
It was reported last week that at least 80 firms from the FTSE 100 were to sign the letter, but last night it emerged there were only 36 signatures. There were suggestions publication could be delayed until more bosses could be convinced to sign up.
It was also reported yesterday that at least half a dozen of the 20 members of the Prime Minister’s Business Advisory Group would not sign the letter.
The value of the pound fell to a near seven-year low against the dollar at one point yesterday after Boris Johnson spoke of his support for Brexit. Sterling fell to its lowest level against the dollar since March 2009 before recovering slightly, and also weakened against other big currencies.
In a separate development, the ratings agency Moody’s warned that a vote to leave the EU would threaten Britain’s strong credit score. Kathrin Muehlbronner, Moody’s senior vicepresident, said: “We consider it positive that the referendum will take place as soon as June, as a lengthy period of uncertainty on the part of firms and investors would damage the UK’s economic growth prospects.
“That said, the outcome of the referendum remains wide open. In our view, a decision to leave the EU would be credit negative for the UK economy.”
The US investment bank Citi suggested that Brexit had become 10 per cent more likely after Mr Johnson’s announcement that he would be voting to leave the EU.
Mark Carney, the Bank of England Governor, is likely to be asked about the consequences of Brexit today when he appears before a committee of MPs to discuss inflation. The letter, which is expected to be published today, says, according to a leaked copy: “Following the Prime Minister’s renegotiation, we believe that Britain is better off staying in a reformed European Union. He has secured a commitment from the EU to reduce the burden of regulation, deepen the single market and to sign off crucial international trade deals.”
The Daily Telegraph understands that Sky, L&G, Barclays, RBS, Sainsbury, Land Securities and Aberdeen Asset Management will not be signing the letter. Refusal to sign does not indicate support for leaving the EU. Some executives are understood to be wary about taking a position without full board discussion. Gatwick airport chief executive Stewart Wingate and Heathrow chief executive John Holland-Kaye have both signed the letter .
Sky News reported those members of the advisory group who had not signed were Alison Brittain, Whitbread chief; Jeff Fairburn, head of Persimmon; Liv Garfield, the Severn Trent boss; Robert Noel, Land Securities’ chief; Steve Varley, UK chairman of EY; and Nigel Wilson, Legal & General chief executive.