Theresa May warned by Euro businesses: No-deal Brexit will hit jobs

Bosses pile on the pressure in crunch talks at Number 10
EPA

Anxious business leaders from every major European country today piled pressure on Theresa May to prevent Britain crashing out of the EU without a trade deal.

The Prime Minister was warned that thousands of jobs could be lost if she fails to pull off an agreement at a vital EU summit next month.

Fifteen business groups were attending the No 10 talks, including Britain’s own CBI and Institute of Directors, plus Medef of France, Germany’s BDI, Confindustria of Italy, Spain’s CEOE and VNO-NCW of the Netherlands.

The appeal from firms comes after it was revealed that pro-Brexit Cabinet ministers Boris Johnson and Michael Gove sent Mrs May a letter demanding that the Government make more preparations for a no-deal exit.

British business warned Mrs May that “drastic contingency plans” to shift some staff abroad had been drafted by a quarter of firms.

One in 10 firms were already considering how to implement them in case there is no assurance of a transition period before the end of March.

Edwin Morgan, head of policy at the Institute of Directors, told the Standard: “They have really got to move on to talking about that and getting it agreed quickly so that business do not have to trigger drastic contingency plans.”

Bernard Spitz, the head of France’s Medef, said every country would lose out if Britain crashed out and destroyed the “integrity of the European market”. “What we expect today is to hear some progress on the British side to let the negotiations start in January,” he told Radio 4’s Today programme.

Downing Street said today’s meeting would “discuss shared opportunities for industry as the UK prepares to leave the EU”. Mrs May planned to set out her vision of a “bold and deep economic partnership” including a bespoke trade deal.

But firms want her to increase her £20 billion cash offer to the EU.

The EU’s chief negotiator Michel Barnier last week set a two-week deadline for the UK to make concessions, including on EU citizens’ rights and the Northern Ireland border, in order for trade talks to be allowed.

CBI director general Carolyn Fairbairn told Today: “This is an important meeting because the urgency that is shared by businesses across Europe is growing by the day. The big message today is around mutual interest.”

The International Monetary Fund today warned of a “negative impact” on British growth from Brexit.

The Washington-based organisation said Europe’s single-currency countries were set for a boom while Britain’s prospects were less certain.

“If the United Kingdom leaves the European Union without an agreement, there will be a notable increase in trade barriers, potentially accompanied by disruption of services in various sectors, with significant negative impact on economic activity.”

Labour put down amendments to the Withdrawal Bill to keep open the option of staying in the single market. Shadow Brexit secretary Sir Keir Starmer said: “No deal is a very, very bad outcome.”