Pdfjoiner

BRITISH CHAMBERS OF COMMERCE
EU REFERENDUM BRIEFINGS
BUSINESS REGULATION
As a member of the European Union, the UK currently adheres to a set of rules and regulations that govern the bloc's Single Market.
In focus groups held at Chambers across the country over Q4 2015 - Q1 2016, businesspeople requested greater information on the
regulatory environment and how it would change in the event of a remain or leave vote - with a particular focus on what they believe
to be the costs and benefits of these rules.
UK businesses believe that business regulation, whether

homegrown or European in origin, has a significant impact on
their prospects. There is a strong appetite amongst firms to
identify where specific regulations and their associated costs
originate from.
*The official Leave campaign says:
*The official Remain campaign says:
EU red tape cost UK businesses billions every

year. Out of the EU, Britain would take back
control of the regulations applied to UK
businesses and we could regulate our economy
in our own interests while substantially
reducing the costs that businesses face.
Damaging regulations would no longer
need to apply, and the rules applicable to
businesses would instead be decided by UK
voters, the UK Government and Parliament.
Outside the EU, we will begin to repeal
damaging
single
market
regulations
We will be able to influence global standardsetting bodies more effectively and regain an
influential voice on the world stage. Many EU
rules are actually set at an international level.
For example, the United Nations Economic
Commission for Europe, which covers the
continent plus North America and a substantial
portion of Asia, sets standards in various
fields such as vehicle safety. EU members
have little influence on this because the
Commission speaks for them, and is looking
to supplant the UK in other global bodies.
Being in the single market makes it easier for

businesses to export to the EU as they
dont have to follow multiple sets of
regulations. It also ensures that Britain is at
the table when the regulations that
exporters have to follow are written,
meaning
our
domestic
industries
interests are represented. If Britain were to
leave, businesses would have to adhere to
EU export rules, but these would be set
by our continental competitors.
Furthermore, it is worth noting that

studies which have looked at a costbenefit analysis of EU regulation on
business have shown that the benefits
outweigh the costs. Leave campaigners
often omit this fact, and fail to admit
that many of the regulations which
derive
from
European
law
would
be retained if the UK were to leave.
For more information on the official Remain and Leave campaign positions on this and other
issues please visit:
Vote Leave: www.voteleavetakecontrol.org
Britain Stronger In Europe: www.strongerin.co.uk
*The British Chambers of Commerce (BCC) is strictly neutral in

the EU referendum debate. The BCC solicited material for this
briefing from both official campaigns and the responses are
reproduced here verbatim.
www.britishchambers.org.uk | @britishchambers

CUSTOMS AND BORDER MANAGEMENT

As a member of the European Union, the UK is part of a customs union, an important feature of the business environment when it
comes to international trade. In focus groups held at Chambers across the country over Q4 2015 - Q1 2016 businesspeople asked for
more clarity on how the UK's customs and border management arrangements will work in the event of a remain or leave vote,
particularly in relation to the border between Northern Ireland and the Republic of Ireland.
Borders and customs boundaries play a central role in
international trade. Be it goods or people, when legal
frameworks or product standards differ on each side this
generates a need for processes, such as proving origin/
destination, compliance with local laws and taxes.
*The official Leave Campaign says:
*The official Remain Campaign says:*
There is no prospect of customs controls

being introduced between Northern Ireland
and the Republic of Ireland if we Vote Leave.
There is clear precedent for this in EU law.
The EU has already acknowledged the UK
and Ireland have a special status. The UK and
Ireland are permitted by the EU Treaties to
retain the Common Travel Area. The Common
Travel Area has been enshrined in UK law since
before we joined the EU. It does not
depend on EU membership and would
continue.
If we remain in the EU we will continue to

have control of our borders, maintain our
special status in the EU which keeps us out of
the Schengen Agreement passport-free
area, while ensuring that people are able to
travel conveniently into the EU, and
between
Northern
Ireland
and
the
Republic of Ireland, for work or pleasure.
It will also mean there will be no duties on
imports from the European Union at our
borders meaning cheaper stock for retail
businesses, and inputs for manufacturers
who rely on goods from other EU
countries as part of their supply chain.
Vote Leaves Nigel Lawson has admitted
that leaving the EU would mean the return of
border posts between the UK and the
Republic of Ireland. The prospect of a new
hard border of this kind is one that many
are legitimately concerned about.
Countries all around the world have made

mutual recognition agreements to sort
out issues like customs inspections and
monitoring. Customs authorities in many
European countries such as Switzerland
effectively
cooperate
with
the
EU.
Outside of the EU, the UK will be in sole
control of border checks. We will maintain
the vital border controls necessary to prevent
the movement of illegal migrants, terrorists
and drugs, and to attack tax evasion. There is
no reason this will lead to substantial delays
or interfere with trade, any more than our
existing border controls are a cause of delay.
For more information on the official Remain and Leave campaign positions on this and other issues please visit:
*The British Chambers of Commerce (BCC) is strictly neutral

in the EU referendum debate. The BCC solicited material for
this briefing from both official campaigns and the responses
are reproduced here verbatim.

FINANCIAL SERVICES & THE CITY OF LONDON

Relative to its size, the UK has a large, sophisticated, and internationally-oriented financial services sector. In its own right it is
important as a source of economic growth, taxation, export revenue and employment. Whether linked into the supply chains of this
industry or not, all firms are affected by the availability and prices of the products and services it provides. In focus groups held
across the UK over Q4 2015 Q1 2016, businesspeople wanted more clarity on how either referendum outcome would impact on
financial services especially the future regulatory and market-access implications for the sector in either case.
Financial services are an important sector of the UK

economy. Many of the worlds largest financial
companies are based here. It employs around 4% of
the UK workforce; produces 8% of UK economic
output; contributes about 12% of UK taxes and in Q1
2016 generated a surplus of exports over imports of
around 10bn.
we leave the EU the City of London

After
will remain the financial capital of Europe.
EU regulation of the City is harming the
financial sector. The Solvency II Directive,
for example, has been estimated to have
a 34bn cost for the insurance industry.
There is no realistic prospect of EU
countries impeding the free movement
of capital or payments between the UK
and the EU after a vote to leave. Article
63 of TFEU provides that: all restrictions
on the movement of capital between
Member States and between Member
States and third countries shall be
abolished... all restrictions on payments
between Member States and third
countries shall be prohibited.
It will be in the interests of EU
negotiators for the UK to retain
passporting rights, as key European
firms passport their services into
London. EU negotiators would be
unlikely to jeopardise the access of
financial firms based in the EU to the City
of London.

financial services are a vital part of
Our
our economy, and benefit greatly from
the ability to passport services to other
single market countries. This would be
under threat if Britain left. There is no
arrangement for the UK outside the EU
which
would
provide
passporting
rights for UK financial services. Consider
that Switzerland, which is outside the
EU, pays in to the EU budget and
accepts free movement, does not have
passporting rights. The future of the
City of London would be under threat
from competitors since firms would be
forced to set up offices in other EU
countries if they want to continue to
access that market. Ultimately some
firms could choose to relocate their
head offices from the UK.
Were we to remain in the EU, our
financial services would continue to
enjoy the benefits of passporting, as
well as benefitting from the new
safeguards
secured
in
the
Prime
Ministers renegotiation to protect our
financial services.
Britain Stronger in Europe: www.strongerin.co.uk


LABOUR, SKILLS, AND MIGRATION

In focus groups held across the country over Q4 2015 - Q1 2016, Chamber members identified access to skills - both from inside and
outside the EU - as a key issue. Firms want greater clarity on the impact of the referendum on both their existing workforce and the
future hiring needs.
Effective labour markets and access to talent is crucial

for businesses to thrive. The impact of leaving or
remaining in the EU on British jobs and wages depends
on the interplay between a number of factors including
trade, investment and immigration.
the UK left the EU, nobod y from

Ifother
EU countries would be removed
Being in the EU makes it easier for

businesses
to employ people with the skills
from the UK and no UK citizens would

be forced to leave other European
countries. The EUs own Charter of
Fundamental Rights would prevent
the
collective
expulsion of British
citizens from the EU.
they need to be competitive. European

funding helps deliver apprenticeships
and skills programmes. It also allows
employees to move between offices fo r
companies based in several EU countries.
Outside the EU, the UK Government

could introduce an immigration system
that is fair and works for the UKs
economic interests.
We will have a sensible regime for

the movement of people that allows
us to replace the immigration policy
we have now - a combination of an
open door for low-skilled labour while
simultaneously stopping highly-skilled
people
from
outside
the
EU
coming to the UK to contribute.
Criminals could be banned and we could
explicitly fast-track those with skills to
come to Britain and work here.
Its vital, however, that immigration is

controlled. Thats why we have kept out of
the Schengen area, keeping control of our
borders. And its why the Governments
renegotiation took action to limit in-work
benefits access. That ensures the system
is fair, and welcomes people who come
here to work hard, pay their taxes and
contribute to our economy, public services
and society. Ending free movement
would mean we would lose access to
the single market meaning prices would
rise and jobs would be lost, according
to HM Treasurys research. It would also
mean that Brits looking to travel to the
continent could need to apply for visas.


PRICES AND CURRENCY

Membership of the EU affects the prices businesses pay, and can charge, for goods and services traded across borders. This happens
through several channels; the impact of regulation; common customs requirements; zero tariffs within the Single Market but common
duties imposed on trade outwith it; the impact of competition. These influences are not static but constantly evolving. As the UK is
not a member of the Eurozone the value of Sterling is also important. In focus groups held across the UK over Q4 2015 Q1 2016,
businesspeople wanted more clarity on how either referendum outcome would impact prices through these channels in the future.
The UK is one of the worlds most open economies with the
combined value of exports and imports equal to 60% of
GDP. The prices that businesses pay for inputs and the
revenue received for their outputs are central to the
performance of British firms and the wider economy.
It is unlikely that there will be any

substantial effect on the currency
from leaving the EU. The UK will retain
its powers over monetary policy, keep
sterling, and take back control of the
regulation of financial stability.
Outside the EU, we will be able to
strike free trade agreements with
emerging economies, such as Brazil,
India and China. This is likely to reduce
prices for consumers.
EU membership increases the costs of
consumer goods. The EUs Common
Agricultural Policy artificially inflates
food prices and consumer prices for
other goods imported from outside
the EU are raised as a result of the
common external tariff and nontariff
barriers to trade imposed by the EU.
A vote to remain in the EU will help to

maintain a stable currency and low
prices. The absence of import duties
on goods from the EU combined with
increased competition from being part
of a market of 500 million drives down
prices
for
consumers.
This
is
supported by a wide range of
independent, expert evidence.
As fluctuations in the currency market
have shown, the uncertainty around a
British exit from the EU could have an
impact on sterling and inward
investment, potentially lasting for
years as a new deal is negotiated.
Furthermore, potential import duties
could increase costs for businesses
and consumers while longer-term
regulatory divergence would increase
costs further.
There is no evidence that the course of

this referendum is having a substantial
effect on the currency or is driving
movements in the foreign exchange
markets.


REGIONAL DEVELOPMENT FUNDING

In focus groups held at Chambers across the country over Q4 2015 - Q1 2016, the role that EU funds play in local and regional
economic development was raised. Currently, EU monies drawn down by the UK form part of the funding mix for economic
development. Some parts of the UK receive additional 'convergence' or 'transition' funding aimed at closing the economic gap with
wealthier EU regions. In 2016, Cornwall; Northern Ireland; Wales; parts of northern England and the Highlands and Islands of Scotland
were in receipt of such monies. EU funding programmes are reviewed every five years so for both referendum outcomes our focus
groups wanted to see more clarity about how infrastructure, training and other initiatives would be supported with non-private
sector funds in the future.
Of the funds received by the UK from the EU budget in 2015,
28% (around 1.25bn) was from structural funds for economic
development. These are used to co-finance local and national
programmes including business support. Separately, the EUs
investment
bank
(EIB)
invested
Euro
7.8bn
in
UK
infrastructure, research and education.
The UK could maintain or increase

the funding provided to specific
regions and for infrastructure which
currently comes through the EU.
The UK fares very badly from the regional
development and structural funds
systems. Despite being one of the largest
contributors to the EU budget, in 2014,
wealthy EU member states, including
Germany, Spain, Portugal, Italy and
France, received more in structural funds
than the UK. As a percentage of gross
national income, only Denmark and the
Netherlands received less than the UK.
will continue to benefit from

Britain
European funding to our regions if we
remain in, maintaining the support which
helps to deliver skills and other projects
all over the UK. Leaving would mean
complete uncertainty about how much,
if any of this funding, would be kept.
Analysis by Oxford Economics shows
that leaving would harm the UK economy,
which would have a knock on effect on
tax revenues and public spending. It is
therefore wholly unrealistic to suggest,
as leave campaigns do, that there would
be a net saving if we were to leave.
the EU, we will be able to

Outside
spend our money on our priorities.


BUSINESS TAXATION
The UK tax system is affected by EU law via three main channels; rules that stipulate when to levy indirect taxes (and to some
extent, within what range), most notably the VAT Directive; rules that assign tax liability in cross-border transactions these
include VAT but also the Parent-Subsidiary and Interest-Royalties Directives concerned with eliminating double taxation on the
payment of dividends, interest and royalties; and rules for information disclosure and reporting of corporate and personal incomes.
These rules have evolved over time and will continue to do so. In focus groups held across the UK over Q4 2015 Q1 2016,
businesspeople wanted more clarity on how the UK tax system would evolve in the future under either referendum outcome.
An economys openness to international trade has a

big influence over the incidence and administration of
tax - through tax competition and resolving liability
issues arising from cross-border transactions. Cooperation to combat tax evasion is a growing influence
on administration, with both EU rules and bilateral
treaties having some impact.
VAT rules would no longer be

Our
determined by EU law. Outside the EUs
common system of VAT, we could
simplify VAT rules substantially.
The
current
system
encourages
complex schemes of tax evasion,
including
acquisition
frauds
and
carousel frauds. These frauds are very
costly to legitimate business.

vote to remain means we can
Acontinue
to work together with other
European countries on tax issues - cooperating to make improvements on
tax issues like the VAT treatment of
cross-border transactions as part of
the EU VAT Forum. This has already
included projects like the pilot scheme
allowing people to request advanced
rulings on what VAT will be due on
complex cross-border transactions.
The current system gives far too much

power to the European Court. This
creates uncertainty for business. On 4
June 2015, the European Court ruled
that the UKs reduced rate of VAT of
5% on energy saving materials was
contrary
to
EU
law.
The
Government
is
now proposing to
raise VAT to 20% on energy saving
materials, which will cost the sector
310 million between 2016-2017 and
2021-2022.


TRADE WITH EUROPEAN UNION MEMBER STATES

Focus groups held at Chambers across the country over Q4 2015 - Q1 2016 regarded the UK's future trading relationship with EU
states as a core issue for this referendum. For some, it was mostly about EU states as markets for exports; for others it was about
imports, cross-border investment or supply chains. All demanded more clarity on what either referendum outcome would mean
for trade with EU member countries in the future - especially for regulatory burdens, treatment of services, competition and costs.
The UK is one of the worlds most open economies

with the combined value of exports and imports
equal to 60% of GDP.
EU states, collectively,
receive 45% of what the UK exports overseas by
value, and account for 53% of imports into the UK.
Remaining in the EU will mean continuing
Outside of the EU we will continue to

trade with other EU members and enjoy
tariff-free access to the Single Market.
We will no longer be subject to the
supremacy of EU law or the jurisdiction of
the European Court. There is a European
free trade zone from Iceland to Turkey
which the UK will be part of. The UK is
the EUs largest single export market - this
means it is in the EUs interests to strike
a free trade deal as soon as possible.
our unfettered access to the 500-millionperson single market in both goods and
services. Being in the single market is the
best possible trading arrangement on
offer to the UK, with full market access,
influence over regulations and zero
tariffs. There is no free trade agreement
that can replicate these benefits.
We will negotiate a new UK-EU deal based

on free trade and friendly cooperation. It
will borrow some of what is in other deals
but adapting things to suit us and our
European friends. Switzerland trades more
with Europe than we do but they dont
think they need to be in the EU to do so.
The deal with Canada shows we can have
a comprehensive free trade agreement
covering goods and services without
accepting the supremacy of EU law, the free
movement of persons or paying billions to
Brussels each year. Our deal will be even better.
Within the EU, businesses will also be

able to continue benefiting from the free
trade agreements the EU has reached
with countries around the world, with
deals already in place with over 50
countries, and more to come, like the U.S.
or Japan. This will boost GDP and open
up global markets, therefore increasing
trade opportunities. By working together
with other European countries we ensure
we have as much weight in negotiations
as possible, so we can keep on reaching
deals that work for British businesses.
For more information on the official Remain and Leave campaign positions on this and other
issues please visit: Vote Leave: www.voteleavetakecontrol.org


TRADE WITH NON-EU MEMBER STATES WITH EXISTING EU TRADE AGREEMENTS
Focus groups held across the country over Q4 2015 - Q1 2016 raised the UK's future trading relationship with non-EU states as a core
issue for this referendum. Trade agreements, which are negotiated by the European Commission for the EU as a whole, are in place
with some of these countries. They stipulate preferential terms for international trade and typically cover import/export duties,
customs requirements and product standards. Our focus groups demanded clarity on what would happen to existing free trade
agreements in the event of a 'remain' or 'leave' vote.

equal to 60% of GDP. Non-EU states, collectively,
A vote to leave will, in and of itself,
Remaining in the EU will mean continuing

our unfettered access to the 500-millionperson single market in both goods and
It will be in the interests of third countries

to maintain existing agreements with the
UK. If the UK makes clear it wants existing
agreements to be maintained on current
terms, there is little cause to think any third
country with which the EU currently has
a free trade agreement would disagree.
The UK would also improve upon the

trade agreements that the EU has
negotiated. The EUs trade deals are
relatively unlikely to include services.
Whereas 90% of Chile, South Korea,
Singapore and Switzerlands free trade
agreements
include
services,
just
68% of the EUs trade agreements do.

have no legal consequences for the

continued
applicability
of
thirdcountry trade agreements to the UK.
After the vote, the UK can begin
negotiations
to
maintain
existing
third-country
agreements
or
improve
upon
them
immediately.


TRADE WITH NON-EU MEMBER STATES WITHOUT EXISTING EU TRADE AGREEMENTS
Focus groups held at Chambers across the country over Q4 2015 - Q1 2016 raised the UK's future trading relationship with non-EU
states as a core issue for this referendum. Trade agreements, which are currently negotiated by the European Commission for the EU
as a whole, are in place with some of these countries. They stipulate preferential terms for international trade and typically cover
import/export duties, customs requirements and product standards. But some major markets, including the US, are not currently
covered. Our focus group demanded more clarity on how the referendum would impact on future international agreements covering
trade with UK-based firms.

equal to 60% of GDP. Non-EU states, collectively,
Outside the EU, the UK will take back
in the EU will mean continuing

Remaining
our unfettered access to the 500-million-
The UK is likely to conclude far more

valuable free trade agreements outside
the EU. In 2015, the aggregate GDP of
all the countries with which the EU had
a trade agreement in force was $7.7
trillion. By contrast, the aggregate GDP
of all countries with which Chile had
trade agreements was $58.3 trillion. The
figure for South Korea was $40.8 trillion
and for Switzerland it was $39.8 trillion.
It is likely that new agreements will be
concluded relatively rapidly. The USAustralia Free Trade Agreement, for
example, was concluded in less than
two years. Likewise, the SwitzerlandChina free trade agreement was
negotiated in a little over two years.
person single market in both goods and

control of powers to secure its own

free trade agreements. The majority
of our exports now go to countries
that are not members of the EU.


Pdfjoiner

Încărcat de

Informații document

Descriere originală:

Titlu original

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

Pdfjoiner

Încărcat de

Drepturi de autor:

Formate disponibile

BRITISH CHAMBERS OF COMMERCE

UK businesses believe that business regulation, whether

*The official Leave campaign says:

*The official Remain campaign says:

EU red tape cost UK businesses billions every

Being in the single market makes it easier for

Furthermore, it is worth noting that

*The British Chambers of Commerce (BCC) is strictly neutral in

BRITISH CHAMBERS OF COMMERCE

CUSTOMS AND BORDER MANAGEMENT

*The official Leave Campaign says:

*The official Remain Campaign says:*

There is no prospect of customs controls

If we remain in the EU we will continue to

Countries all around the world have made

*The British Chambers of Commerce (BCC) is strictly neutral

BRITISH CHAMBERS OF COMMERCE

FINANCIAL SERVICES & THE CITY OF LONDON

Financial services are an important sector of the UK

we leave the EU the City of London

*The official Remain campaign says:

*The official Leave campaign says:

*The British Chambers of Commerce (BCC) is strictly neutral in

BRITISH CHAMBERS OF COMMERCE

LABOUR, SKILLS, AND MIGRATION

Effective labour markets and access to talent is crucial

*The official Leave campaign says:

*The official Remain campaign says:

the UK left the EU, nobod y from

Being in the EU makes it easier for

from the UK and no UK citizens would

they need to be competitive. European

Outside the EU, the UK Government

We will have a sensible regime for

Its vital, however, that immigration is

*The British Chambers of Commerce (BCC) is strictly neutral

BRITISH CHAMBERS OF COMMERCE

PRICES AND CURRENCY

*The official Leave campaign says:

*The official Remain campaign says:

It is unlikely that there will be any

A vote to remain in the EU will help to

There is no evidence that the course of

*The British Chambers of Commerce (BCC) is strictly neutral

BRITISH CHAMBERS OF COMMERCE

REGIONAL DEVELOPMENT FUNDING

*The official Leave campaign says:

*The official Remain campaign says:

The UK could maintain or increase

will continue to benefit from

the EU, we will be able to

*The British Chambers of Commerce (BCC) is strictly neutral

BRITISH CHAMBERS OF COMMERCE

An economys openness to international trade has a

VAT rules would no longer be

*The official Remain campaign says:

*The official Leave campaign says:

The current system gives far too much

*The British Chambers of Commerce (BCC) is strictly neutral in

BRITISH CHAMBERS OF COMMERCE

TRADE WITH EUROPEAN UNION MEMBER STATES

The UK is one of the worlds most open economies

The official Remain Campaign says: