UK agriculture needs access to EU market and migrant labour to avoid 'cliff-edge', says CBI report

UK firms need to continue to have 'barrier-free' access to European Union markets after Brexit, the CBI business lobby group has warned.

In their report called Making a Success of Brexit, the Confederation of Business Industries (CBI) says access to barrier-free trade and skilled migrant labour should be at the heart of any deal.

The government said it was committed to delivering the best possible access to European markets for UK businesses.

It also drew attention to the 'thousands' of conversations it has had with firms across 18 sectors within the country, which underlined different priorities for British firms. It fears there is a danger of some sectors getting left behind.

'Serious concerns'

The report said: "There are serious concerns in the business community about disruption if the day after the UK leaves the EU, its final 'deal' is not complete, with all trading and regulatory issues fully ironed out.

"The EU's importance to the sector as an export destination is likely to remain high, as perishable goods – such as milk and fresh produce – do not travel long distances well, despite innovations.

"There are some companies for whom avoiding high tariffs on their goods trade is critical, and others who prioritise avoiding non-tariff barriers to trade, particularly around services," it stated.

"Additional barriers to any sector's trade will be detrimental to other sectors. A new arrangement with the EU must therefore be open and comprehensive, covering goods and services, tariffs and non-tariff barriers."

Foreign labour

Agriculture employs less than half a million people; financial services more than a million. Farming adds £8.5bn to the value of the UK economy, financial services £120bn.

Agriculture is worried about potential average tariffs of 22.5% on meat imposed on non-EU countries and needs access to low-skilled labour to harvest and process food.

On migration, the CBI said there is a 'whole-economy' need for labour from abroad in the UK.

The lobby group said sectors like construction, hospitality, leisure and tourism rely on overseas workers to keep their businesses going.

Calling for urgent guarantees that EU workers in the UK can stay in the country, the CBI said access to workers abroad had been 'part of the solution' to support economic growth.

'Highly complex'

According to the report, businesses also need a clear plan for future regulation that balances the need for 'influence, access and opportunity' in the EU, protection for the social and economic benefits of EU funding, and a renewed focus on global economic relationships.

CBI director-general Carolyn Fairbairn said: "Leaving the EU will be a highly complex process and all sectors of the economy are making their priorities clear in order to get it right.

"The government will need to take a 'whole economy' approach to avoid leaving sectors behind."

Earlier this year, construction group JCB left the CBI, reportedly because of its anti-Brexit stance.